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Bursa Malaysia Set for Stable Week Amid Tight Trading Range

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Bursa Malaysia remains stable with the FBM KLCI ending the week at 1,589.78

Bursa Malaysia is anticipated to trade within a tight range of 1,600 to 1,610 in the near term, reflecting cautious optimism among investors. $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ fell 2.66 points week-on-week to 1,589.78, maintaining resilience despite external pressures. Malaysia’s steady economic fundamentals, including manageable inflation, low unemployment, and robust trade performance, have provided a solid foundation for market stability.

Sectoral Performance Highlights Mixed Trends

Sectoral analysis showed mixed results, with $Bursa Finance Services (0010I.MY)$ falling 119.77 points to 19,037.07 and $Bursa Plantation (0025I.MY)$ shrinking 87.66 points to 7,538.52. $Bursa Technology (0005I.MY)$ dipped slightly by 0.42 points, while $Bursa Energy (0061I.MY)$ lost 7.05 points to 820.12. However, $Bursa Industrial Products & Services (0002I.MY)$ gained 5.01 points to 173.28, and $Bursa Health Care (0062I.MY)$ climbed 31.48 points to 2,136.11, reflecting selective investor interest in defensive and growth sectors.

Trading Activity Sees Slight Uptick

Turnover for the week rose marginally to 14.54 billion units valued at RM11.54 billion, compared to 14.32 billion units worth RM12.14 billion in the previous week. The Main Market volume eased slightly, while $FTSE Bursa Malaysia ACE Index (.FBMMES.MY)$ recorded increased activity, with 2.57 billion shares traded, up from 2.02 billion shares previously. This increase indicates continued interest in small-cap counters amid broader market caution.

Global trade tensions and unclear U.S. policies weigh on investor confidence

External Factors Impact Sentiment

Global uncertainties, including the lingering impact of U.S.-China trade tensions and concerns over protectionist policies, have weighed on market sentiment. Discussions at the Global Financial Leaders’ Summit suggested a reduced probability of extreme tariff measures, alleviating some fears but leaving investors cautious. The lack of clear policy direction in the U.S. continues to influence short-term volatility.

Key Support and Resistance Levels in Focus

Traders expect $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ to consolidate between 1,585 and 1,610 in the short term, with 1,600 remaining a critical psychological level. The index is likely to await new catalysts for a breakout, underscoring the importance of external developments and domestic policy clarity in shaping market direction.

Investors adopt a wait-and-see approach as the market holds above 1,600

Outlook: Stability Amid Cautious Optimism

While Malaysia’s economic fundamentals provide a stable backdrop, market movements remain heavily influenced by global factors. Investors are likely to maintain a wait-and-see approach, focusing on key policy updates and economic data releases to gauge future opportunities. The tight trading range reflects the market’s cautious yet optimistic stance.

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