Volatile Trade Expected On Bursa Malaysia Next Week

By Siti Radziah Hamzah

KUALA LUMPUR, March 7 (Bernama) -- Bursa Malaysia is expected to trade with intermittent volatility next week as investors reassess the implications of the escalating conflict in the Middle East, said analysts. 

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said Bursa Malaysia might remain in rangebound trading next week as investors maintain a cautious stance and refrain from taking aggressive positions.

He noted that the FBM KLCI is expected to fluctuate between 1,690 and 1,730, with volatility to remain elevated in the near term due to geopolitical uncertainties. 

"However, the broader market structure still appears constructive. Provided the benchmark index stays above its key support levels of 1,690-1,700, medium-term investors can consider accumulating quality blue chips on weakness or oil and gas stocks for short-term play," he told Bernama. 

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the near-term direction of the market would depend largely on how the conflict evolved.

He added that investors would closely monitor whether the situation stabilises or intensifies, particularly in relation to potential disruptions to major oil supply corridors such as the Strait of Hormuz. 

“As long as geopolitical uncertainties persist, Bursa Malaysia may continue to experience intermittent volatility, although the recent improvement in market momentum suggests that downside pressure could remain contained by selective buying interest," Mohd Sedek told Bernama. 

For the week just ended, Bursa Malaysia saw a notable decline toward the 1,700-point level early this week amid geopolitical strifes, followed by a mid-week consolidation as buying interest returned to heavyweights in the energy sector.  

Global oil prices rose to above US$80 per barrel this week as the market reacted to the effective closure of the Strait of Hormuz following the conflict in the Middle East.

At the time of writing, Brent crude jumped 2.08 per cent to US$87.19 per barrel

On a Friday-to-Friday basis, the FBM KLCI gained 1.45 points to 1,718.06  from 1,716.61 a week earlier.

On the index board, the FBM Top 100 Index declined 66.41 points to 12,367.41, the FBM Emas Index shed 84.07 points to 12,527.36, the FBM Mid 70 Index dropped 421.14 points to 17,103.33, the FBM Emas Shariah Index slid 10.76 points to 12,206.80, and the FBM ACE Index trimmed 320.22 points to 4,400.03.

Sector-wise, the Financial Services Index tumbled 293.75 points to 20,788.05,  the Energy Index rose 41.53 points to 795.27, the Plantation Index fell 21.13 points to 8,248.44, and the Industrial Products and Services Index gained 7.46 points to 178.29.

Weekly turnover surged to 17.29 billion units worth RM18.69 billion against 13.62 billion units worth RM18 billion a week earlier.

Main Market volume rose to 11.08 billion units worth RM17.45 billion against 8.42 billion units worth RM16.87 billion previously.

Warrants turnover increased to 4.29 billion units valued at RM550.73 million from 3.42 billion units valued at RM392.22 million last week.

Meanwhile, ACE Market volume gained to 1.90 billion units valued at RM571.54 million from 1.77 billion units valued at RM730.54 million in the prior week.

-- BERNAMA