Bursa Malaysia Likely to Trade Cautiously Amid Geopolitical Concerns
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The outlook for Bursa Malaysia is expected to remain cautious next week, influenced by ongoing global economic uncertainties and rising geopolitical tensions in the Middle East. Despite an upward trend in Hong Kong’s $Hang Seng Index (800000.HK)$, supported by optimism over China’s stimulus measures, Malaysia’s market sentiment remains subdued, reflecting the cautious mood prevalent in global markets.
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ is projected to stay range-bound, trading between 1,625 and 1,640, with a potential upside if bargain-hunting opportunities arise. Key resistance levels are seen around the 50-day exponential moving average (EMA) at 1,650. However, geopolitical risks, particularly the growing tensions between Israel and Iran, continue to weigh on the market.
Weekly Performance Review
Bursa Malaysia ended the week on a lower note, with $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ falling 30.12 points to 1,629.97. The broader market also saw declines, with $FTSE Bursa Malaysia EMAS Index (.FBMEMAS.MY)$ dropping 177.71 points and $FTSE Bursa Malaysia EMAS Shariah Index (.FBMS.MY)$ shedding 198.83 points. $Bursa Finance Services (0010I.MY)$ faced significant losses, dropping 275.65 points, while $Bursa Energy (0061I.MY)$ bucked the trend, rising 35.93 points thanks to increasing oil prices driven by concerns over supply disruptions linked to the Middle East conflict.
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ is projected to stay range-bound, trading between 1,625 and 1,640, with a potential upside if bargain-hunting opportunities arise. Key resistance levels are seen around the 50-day exponential moving average (EMA) at 1,650. However, geopolitical risks, particularly the growing tensions between Israel and Iran, continue to weigh on the market.
Weekly Performance Review
Bursa Malaysia ended the week on a lower note, with $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ falling 30.12 points to 1,629.97. The broader market also saw declines, with $FTSE Bursa Malaysia EMAS Index (.FBMEMAS.MY)$ dropping 177.71 points and $FTSE Bursa Malaysia EMAS Shariah Index (.FBMS.MY)$ shedding 198.83 points. $Bursa Finance Services (0010I.MY)$ faced significant losses, dropping 275.65 points, while $Bursa Energy (0061I.MY)$ bucked the trend, rising 35.93 points thanks to increasing oil prices driven by concerns over supply disruptions linked to the Middle East conflict.
Sectoral and Market Insights
$Bursa Energy (0061I.MY)$ sector performed well, with oil-related stocks supported by the increase in $Brent Last Day Financial Futures(JAN5) (BZmain.US)$ prices. Meanwhile, $Bursa Finance Services (0010I.MY)$ and $Bursa Plantation (0025I.MY)$ sectors experienced declines, mirroring the overall market’s cautious sentiment. Turnover increased slightly to 16.87 billion units worth RM13.54 billion, while the Main Market saw a decrease in trading volume. $Warrants (LIST9007.MY)$ and $FTSE Bursa Malaysia ACE Index (.FBMMES.MY)$ markets experienced strengthened turnover, reflecting investor activity in these segments despite the broader market decline.
$Bursa Energy (0061I.MY)$ sector performed well, with oil-related stocks supported by the increase in $Brent Last Day Financial Futures(JAN5) (BZmain.US)$ prices. Meanwhile, $Bursa Finance Services (0010I.MY)$ and $Bursa Plantation (0025I.MY)$ sectors experienced declines, mirroring the overall market’s cautious sentiment. Turnover increased slightly to 16.87 billion units worth RM13.54 billion, while the Main Market saw a decrease in trading volume. $Warrants (LIST9007.MY)$ and $FTSE Bursa Malaysia ACE Index (.FBMMES.MY)$ markets experienced strengthened turnover, reflecting investor activity in these segments despite the broader market decline.
Global Factors and Future Outlook
Looking ahead, investors are expected to closely monitor global developments, particularly any further escalation in Middle East tensions and their impact on oil prices. While domestic economic fundamentals remain stable, geopolitical risks will likely drive caution in the local market in the near term. Investors will watch for opportunities in undervalued stocks, with $Bursa Energy (0061I.MY)$ and certain $Bursa Industrial Products & Services (0002I.MY)$ sectors potentially benefiting from rising global commodity prices.
Looking ahead, investors are expected to closely monitor global developments, particularly any further escalation in Middle East tensions and their impact on oil prices. While domestic economic fundamentals remain stable, geopolitical risks will likely drive caution in the local market in the near term. Investors will watch for opportunities in undervalued stocks, with $Bursa Energy (0061I.MY)$ and certain $Bursa Industrial Products & Services (0002I.MY)$ sectors potentially benefiting from rising global commodity prices.
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