CAUTIOUS OUTLOOK FOR BURSA MALAYSIA NEXT WEEK AS INVESTORS AWAIT RESPONSE TO US TARIFFS

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, April 26 (Bernama) -- Bursa Malaysia is expected to maintain a cautious outlook next week, consolidating within a tight range of 1,513 to 1,515, as investors await clarity on Malaysia’s strategic response to the recent US tariff announcements, from a special Dewan Rakyat sitting on May 5.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said that compounding the cautious tone, next week will be a shortened trading week, with Bursa Malaysia closed on Thursday in observance of Labour Day -- potentially weighing on liquidity and limiting upward momentum.

“Despite the recent gains, the FBM KLCI has struggled to decisively breach the psychological resistance level at 1,515 -- a level we previously highlighted as critical.

“This hesitation introduces uncertainty regarding the sustainability of the current uptrend heading into next week,” he told Bernama. 

He said that after the recent three consecutive days of gains, profit-taking may intensify, particularly among retail investors seeking to lock in short-term gains amid ongoing policy uncertainties.

“While the absence of foreign selling is encouraging, confirmation of sustained inflows -- pending Friday’s foreign investors’ data -- would be a constructive signal and may support positive momentum into early May.

“Export-oriented counters remain well-positioned to outperform, provided there is no further escalation in US trade policy,” he added. 

Nonetheless, Mohd Sedek said sentiment remains fragile and highly sensitive to geopolitical developments.

“Investors should continue to monitor external headlines closely, as any abrupt policy shifts could derail the nascent recovery,” he said. 

Regarding the positive market sentiment following the meeting between Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz and the United States (US) officials in Washington, along with the easing of US-China trade tensions, he remarked that these developments have come at the right time.

“Export-oriented stocks (index-linked components) began rising after midday, contributing to the upward movement of the FBM KLCI, which climbed up at 3.30 pm on Friday amid choppy trading.

“Additionally, foreign institutional investors generally increase their participation in the Malaysian market during the afternoon session, coinciding with higher liquidity levels observed in the latter part of the trading day.

“We’re hopeful that today (Friday) will see net foreign buying,” he added.

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng believes investors are ready to buy the breakout at around 1,518, add to their positions, or use leveraged tools to maximise profits as the benchmark index is showing signs of recovery after reclaiming the 20-day exponential moving average (EMA). 

“The gap between the 20-day and 50-day EMA is narrowing, hinting at a potential convergence that could develop into a bullish crossover if momentum continues.

“As such, we anticipate the FBM KLCI to trend within the range of 1,490-1,520 for next week,” he added.

On a Friday-to-Friday basis, the key index gained 9.80 points to 1,509.20 from 1,499.40 a week earlier.

The FBM Emas Index advanced 98.34 points to 11,219.84, the FBMT 100 Index improved by 85.19 points to 10,989.92, and the FBM Emas Shariah Index strengthened by 174.13 points to 11,084.26, the FBM 70 Index jumped 177.47 points to 15,791.10, and the FBM ACE Index rose 48.19 points to 4,623.57.

By sector, the Industrial Products and Services Index added 3.65 points to 148.73, the Energy Index expanded 8.81 points to 674.68, but the Financial Services Index went down 42.33 points to 17,991.19, the Plantation Index depreciated 1.46 points to 7,224.92, and the Healthcare Index eased 0.70 of-a-point to 1,869.15.

Turnover strengthened to 14.14 billion units valued at RM9.03 billion from 13.43 billion units valued at RM8.48 billion in the preceding week.

The Main Market volume gained to 6.62 billion units worth RM7.90 billion, compared with 6.30 billion units worth RM7.33 billion previously.

Warrants turnover increased to 5.77 billion units worth RM571.23 million from 5.53 billion units worth RM638.12 million in the prior week.

The ACE Market volume rose to 1.73 billion units valued at RM547.26 million, from 1.59 billion units valued at RM504.28 million previously.

-- BERNAMA