BURSA MALAYSIA LIKELY TO REMAIN CAUTIOUS NEXT WEEK

By Siti Radziah Hamzah

KUALA LUMPUR, Jan 4 (Bernama) -- Bursa Malaysia is likely to remain cautious next week as investors are bracing for a cautious start to 2025, with eyes fixed on the US President Inauguration Day scheduled on Jan 20, said an analyst. 

SPI Asset Management managing partner Stephen Innes said the looming threat of trade protectionism could trigger a period of stagflation, challenging global economic growth and posing particular risks for Asia's exporters. 

He noted that although the primary target of these measures appeared to be China, neighbouring economies with significant export ties with China, like Malaysia, might feel the initial pinch. 

"This geopolitical tension could overshadow the fundamentally bullish outlook for Malaysia's market and economy in the first quarter of the new year, casting a shadow of uncertainty over the region," he told Bernama. 

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said Jan 10 would be a busy day for both the Malaysian and US markets. 

He said for Malaysia, the Department of Statistics Malaysia is scheduled to release November data on manufacturing statistics, the industrial production index, labour force statistics, as well as wholesale and retail trade. 

"Although these are lagging indicators, they are crucial for updating economic forecasts and refining market outlooks," he told Bernama.  

In the US, Mohd Sedek said the release of non-farm payroll data would be closely watched as this data would provide critical insights into the labour market and could significantly influence the US Federal Open Market Committee's stance ahead of its meeting on Jan 28-29.

"These developments will be instrumental in shaping market sentiment and investment strategies for the weeks ahead," he added.

For the holiday-shortened week, the FBM KLCI extended its winning streak to six days on Tuesday (Dec 31) and closed 2024 higher by 4.65 points to 1,642.33 compared with Monday’s close of 1,637.68.

The local bourse was closed on Wednesday for the New Year holiday. 

However, the market barometer opened the new year on a weaker note with profit-taking activities and in line with most regional markets as investors remain cautious following the US Federal Reserve's indication that there will be fewer rate cuts this year than previously expected, while the incoming Donald Trump administration's growth policies are likely to drive inflation.

On a Friday-to-Friday basis, the key index rose 1.32 points to 1,629.46 compared to 1,628.14 in the previous week. 

The FBM Emas Index gained 51.89 points to 12,533.64, the FBMT 100 Index advanced 37.72 points to 12,202.89, and the FBM Emas Shariah garnered 57.40 points to 12,546.49. 

The FBM 70 Index expanded 161.66 points to 18,867.33 and the FBM ACE Index was 122.39 points better at 5,472.56. 

By sector, the Financial Services Index fell 18.90 points to 19,023.06, the Plantation Index eased 4.50 points to 7,598.51, and the Healthcare Index slid 16.92 points to 2,362.03. 

The Technology Index inched down 0.37 of-a-point to 64.81, the Energy Index perked up 26.65 points to 851.30, and the Industrial Products and Services Index fell 0.22 of-a-point to 174.45.

Turnover widened to 11.30 billion units worth RM8.98 billion from 9.72 billion units worth RM7.52 billion in the previous week.

The Main Market volume improved to 6.10 billion units valued at RM8.05 billion versus 5.01 billion units valued at RM6.71 billion last week.

Warrants turnover strengthened to 3.28 billion units worth RM315.05 million from 1.89 billion units worth RM243.54 million previously.

The ACE Market volume narrowed to 1.91 billion units valued at RM613.73 million from 2.10 billion units valued at RM565.86 million last week.

-- BERNAMA