Bursa Malaysia seen consolidating next week within 1,600-1,630 range as market consolidates

Bursa Malaysia is projected to consolidate within the 1,600-1,630 range next week, according to Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng. The benchmark index has shown resilience around 1,600 this week, though surpassing the 1,620 level may prove difficult without robust buying. Investors will keep an eye on Bank Negara Malaysia's monetary policy decision on November 5 and upcoming corporate earnings during the week.

Mohd Sedek Jantan, IPPFA Director of Investment Strategy and Country Economist, highlighted that Malaysia's Manufacturing Purchasing Managers' Index (PMI), due on November 2, will be a critical indicator of economic momentum. The previous month's reading fell below the 50-point threshold, indicating a contraction in manufacturing activity.

A further decline could raise concerns about the sector's resilience, especially with higher energy costs and external uncertainties. Conversely, an improvement in the PMI would bolster confidence in domestic economic fundamentals and support local equities. Weekly trading on Friday saw the FTSE Bursa Malaysia KLCI increase by 4.04 points to 1,615.60, up from 1,611.56 the previous week.

Notable gains were seen on various index boards, including the FBM Emas Index, FBM Top 100 Index, and FBM Emas Shariah Index. The Energy Index, Plantation Index, and Industrial Products and Services Index also witnessed increases. However, the Financial Services Index saw a decline, and weekly turnover rose to 15.53 billion units worth RM9.97 billion, while Main Market volume decreased to 5.13 billion units valued at RM8.83 billion. Warrants turnover also decreased.