BURSA MALAYSIA TO REMAIN CAUTIOUS NEXT WEEK, LIKELY TO TRADE WITHIN TIGHT RANGE - ANALYST

By Karina Imran

KUALA LUMPUR, March 1 (Bernama) -- Bursa Malaysia is expected to remain cautious next week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) to trade within a narrow range as investors evaluate key economic developments, according to an analyst.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan noted that the 1,590 resistance level will be a key threshold to watch, and a breakout above this level could signal renewed buying interest.

However, failure to surpass this level may lead to continued consolidation, he told Bernama. 

Mohd Sedek also said that economic data releases, both domestically and globally, would be pivotal in shaping investor confidence and determining the market’s direction. 

"In Malaysia, attention will be on the release of the S&P Global Malaysia Manufacturing Purchasing Managers index (PMI) for February 2025, scheduled for Monday. This data will be closely monitored as it serves as a key indicator of Malaysia’s near-term economic outlook, especially amid ongoing global uncertainties," he said. 

On the international front, Mohd Sedek said China’s Two Sessions meeting, commencing on March 5, would be a key focus for global markets. 

He said critical economic data, including the official China's PMI on Saturday, the Caixin PMI (March 3) and trade data (March 7), would provide valuable insights into China’s economic trajectory. 

"Market dynamics are also anticipated to shift, with investor focus gradually transitioning from the technology and AI (artificial intelligence) sectors to real estate, industrials, and raw materials," he said.

Additionally, investors will also be closely monitoring the US's non-farm payroll next Friday, as stronger-than-expected data could heighten concerns that the Federal Reserve may keep interest rates elevated for a prolonged period. 

“Such a development could have wider implications for global investor sentiment, potentially leading to spillover effects on Malaysia’s financial markets," he explained. 

For the trading week just ended, the FBM KLCI mostly declined, weighed by concerns over the US tariff policy set to take effect on April 4, raising fears about its impact on the global economy, inflation, supply chains, and investment plans.

On Thursday, US President Donald Trump confirmed that 25 per cent tariffs on Mexico and Canada, along with an additional 10 per cent tariff on China, would take effect on March 4. 

On a Friday-to-Friday basis, the key index inched down 16.33 points to 1,574.70 compared with 1,591.03 a week earlier.

The FBM Emas Index slumped 370.29 points to 11,736.32, the FBMT 100 Index tumbled 317.38 points to 11,496.57, the FBM Emas Shariah Index shrank 435.72 points to 11,411.79, the FBM 70 Index plummeted 1,234.60 points to 16,636.63, and the FBM ACE Index slid 377.79 points to 4,756.99.

By sector, the Industrial Products and Services Index eased 5.64 points to 158.35, the Energy Index trimmed 44.41 points to 754.14, and the Financial Services Index decreased 15.69 points to 19,326.95, but the Plantation Index was 154.78 points firmer at 7,609.70.

Turnover narrowed to 15.94 billion units valued at RM16.35 billion from 16.17 billion units valued at RM12.32 billion in the preceding week.  

The Main Market volume expanded to 9.44 billion units worth RM15.14 billion against 7.89 billion units worth RM10.90 billion previously.  

Warrants turnover slipped to 4.46 billion units valued at RM527.65 million versus 5.31 billion units valued at RM525.79 million last week.  

The ACE Market volume trimmed to 2.02 billion units worth RM684.24 million from 2.95 billion units worth RM964.11 million in the previous week.

-- BERNAMA