Bursa May Stay Volatile Next Week On US Shutdown, Budget 2026

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, Oct 4 (Bernama) -- Bursa Malaysia is expected to remain volatile next week, if the United States (US) federal government shutdown persists, said an analyst. 

IPPFA Sdn Bhd’s director of investment strategy and country economist, Mohd Sedek Jantan, said each week of closure is estimated to shave 0.1 percentage points off fourth quarter gross domestic product growth (annualised), or roughly US$7 billion, raising the risk that a prolonged standoff could erode confidence.

At the same time, domestic attention will pivot to Budget 2026, to be tabled by Prime Minister Datuk Seri Anwar Ibrahim next Friday. 

He said as the first budget under the 13th Malaysia Plan, it is expected to set out the government’s fiscal direction, with emphasis on subsidy rationalisation, social protection, and infrastructure spending.

Beneficiaries are likely to include the consumer, tourism, and construction sectors, consistent with the government’s medium-term growth agenda.

“Taken together, while global risks may inject volatility, Bursa Malaysia is expected to consolidate with a downward bias in the run-up to the budget.

“Profit-taking is likely to persist, particularly as technology counters have already priced in optimism over prospective US Federal Reserve interest rate cuts,” Mohd Sedek told Bernama.

He added that against this backdrop, investors are expected to remain selective, positioning cautiously ahead of fiscal announcements that will set the tone for sentiment into year-end.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the overall outlook would remain positive as long as the benchmark holds above 1,620, paving the way for a move towards 1,650.

He said any consolidation should be seen as a healthy pause, with 1,600 serving as the critical line of defense.

“We anticipate the FBM KLCI to trend within the range of 1,620-1,650 for next week,” said Thong. 

On a Friday-to-Friday basis, the FBM KLCI advanced 26.01 points to 1,635.06 from last week’s 1,609.05.

The FBM Emas Index jumped 188.23 points to 12,181.67, the FBMT 100 Index rose 183.92 points to 11,908.96, and the FBM Emas Shariah Index climbed 145.26 points to 12,193.73.

The FBM ACE Index surged 146.66 points to 5,347.12, while the FBM 70 Index leapt 239.85 points to 17,090.20.

By sector, the Plantation Index gained 33.99 points to 7,796.64, and the Industrial Products and Services Index edged up 0.59 of-a-point to 174.35.

The Financial Services Index soared 445.56 points to 18,602.40, while the Energy Index firmed 5.14 points to 787.66.

Weekly turnover increased to 18.04 billion units worth RM14.55 billion, compared with 17.03 billion units valued at RM13.37 billion in the previous week.

The Main Market volume rose to 10.07 billion units worth RM12.85 billion from 8.80 billion units valued at RM11.55 billion previously.

Warrant turnover narrowed to 4.70 billion units valued at RM694.53 million, versus 5.45 billion units worth RM826.39 million in the preceding week.

The ACE Market volume advanced to 3.25 billion units valued at RM998.20 million, compared with 1.52 billion units worth RM610.19 million previously.

-- BERNAMA