FBM KLCI SEEN TO MOVE BETWEEN 1,600 AND 1,610 NEXT WEEK

KUALA LUMPUR, Nov 30 (Bernama) -- Bursa Malaysia is likely to maintain its recovery momentum in the coming week, with the FBM KLCI moving within a constrained range of 1,600-1,610, said UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan.

He believed bargain hunting would support the market.

“While the index briefly slipped into negative territory this week, breaching the key 1,600 psychological level, a rebound appears probable.

“Bargain hunters are likely to seize opportunities following the conclusion of the earnings season, and overall market sentiment remains broadly supportive, he said.

Mohd Sedek said the upward momentum in US indices suggests continued bullishness, which could spill over into regional markets, including Malaysia.

He attributed the downtrend at the end of the week to the US Thanksgiving holiday, which led to reduced market participation. The shortened trading hours on Friday could also provide limited leads for next Monday.

“While low trading volumes may have exaggerated the decline, the overall trend remains relatively stable. This suggests that, although caution is warranted, the FBM KLCI could stabilise in the near term, albeit within a narrow range,” he noted.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng also foresees the FBM KLCI staying in consolidation mode, trading sideways within 1,590 to 1,610 next week, as market participants await fresh developments.

Looking ahead, the key report to watch is the S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI), set for release on Monday.

The October PMI held steady at 49.5, while November data showed further improvement, driven by increased optimism among domestic businesses, as indicated by the Malaysian Institute of Economic Research (MIER) Business Conditions Survey, providing added support for local equities.

The MIER recently indicated that the business outlook for the fourth quarter of 2024 remained positive, with the Business Confidence Index (BCI) reaching nearly 105 points. 

On a Friday-to-Friday basis, the FBM KLCI improved 4.51 points to 1,594.29 from 1,589.78 in the previous week. The index failed to sustain the crucial 1,600 level breached on Tuesday amid worries about Donald Trump’s tariff threat and Fed interest rates prospects.  

The FBM Emas Index increased 20.14 points to 12,131.13 and the FBMT 100 Index rose 9.36 points to 11,823.79.

Meanwhile, the FBM 70 Index sank 74.20 points to 17,859.82, the FBM Emas Shariah Index dipped 90.82 points to 12,034.69 and the FBM ACE Index was 31.42 points weaker at 5,131.65.

By sector, the Financial Services Index surged 152.96 points to 19,190.03 and the Healthcare Index climbed 33.38 points to 2,169.49.

The Plantation Index shrank 6.70 points to 7,531.82, the Technology Index eased 0.68 of-a-point to 58.48, the Energy Index lost 7.83 points to 812.29 and the Industrial Products and Services Index trimmed 2.99 points to 170.29.

Turnover edged up to 14.92 billion units worth RM16.82 billion compared with 14.54 billion units worth RM11.54 billion in the previous week.

The Main Market volume appreciated to 8.40 billion shares valued at RM15.63 billion from 7.33 billion shares valued at RM10.30 billion last week.

Warrant turnover decreased to 4.18 billion units worth RM440.95 million compared with 4.63 billion units worth RM566.18 million previously.

The ACE Market volume dropped to 2.38 billion shares valued at RM746.89 million versus 2.57 billion shares valued at RM669.94 million last week.

-- BERNAMA