Volatility Seen Continuing For Bursa Malaysia Next Week After Raya Break

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, March 21 (Bernama) -- Trading on Bursa Malaysia is expected to continue to be volatile next week after the Raya break, although the broader trend still points to a gradually rising momentum.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the key drivers remain oil prices and developments in West Asia, with sentiment likely to stay highly event-driven.

“Notably, any escalation in geopolitical tensions during the extended holiday period from Friday to Monday could trigger a temporary spike in oil prices. However, if tensions ease before markets reopen on Tuesday, the overall impact on Bursa Malaysia is likely to remain contained,” he told Bernama. 

He reiterated that the market remains sensitive to abrupt movements in energy prices.

“Tracking the daily pattern of the FBM KLCI from Feb 27, 2026, to March 19, 2026, the trend suggests that a sharp spike in oil prices could drag the index lower by around 2.0 per cent to 2.5 per cent, as higher energy costs weigh on sentiment and tighten financial conditions,” he added. “In a more adverse scenario, Brent crude could move towards the US$120 to US$130 per barrel range, with Asia particularly exposed to supply disruptions.” 

Mohd Sedek said markets have shown an ability to absorb a gradual rise in oil prices without significant disruption, with the key risk lying in the pace of the increase.  “A sudden spike could quickly lift inflation expectations, trigger policy repricing, and reverse capital flows. As such, while the near-term outlook remains cautiously constructive, it remains contingent on stable energy markets and no further escalation in geopolitical tensions,” he added. 

For the week just ended, Bursa Malaysia traded mixed, tracking the regional market performance amid the ongoing West Asia conflict.

On a Friday-to-Thursday basis, the FBM KLCI rose 21.86 points to 1,720.71 from 1,698.85 a week earlier.

On the index board, the FBM Top 100 Index jumped 139.37 points to 12,388.79, while the FBM Emas Index advanced 132.97 points to 12,538.80, and the FBM Mid 70 Index climbed 111.04 points to 17,142.98.

The FBM Emas Shariah Index gained 137.38 points to 12,267.30, and the FBM ACE Index added 28.49 points to 4,404.29.

Sector-wise, the Financial Services Index strengthened 260.86 points to 20,679.12, and the Industrial Products and Services Index edged up 7.89 points to 183.16, while the Energy Index fell 3.29 points to 793.81.

The Plantation Index grew 244.71 points to 8,688.90.

The weekly turnover fell to 11.88 billion units worth RM14.56 billion against 17.71 billion units worth RM19.38 billion a week earlier.

The Main Market volume fell to 7.41 billion units worth RM13.74 billion against 11.15 billion units worth RM18.18 billion previously.

Warrant turnover dropped to 3.39 billion units valued at RM424.90 million from 4.87 billion units valued at RM587.45 million last week.

The ACE Market volume declined to 1.07 billion units valued at RM392.27 million from 1.67 billion units valued at RM606.73 million in the prior week.

Bursa Malaysia and its subsidiaries will be closed from Friday to Monday (March 20-23, 2026) for Hari Raya Aidilfitri and will resume operations on Tuesday (March 24, 2026).

-- BERNAMA