Bursa Malaysia expected to consolidate next week, trade within 1,600-1,630 level

KUALA LUMPUR: Bursa Malaysia is expected to consolidate next week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) projected to trade within the 1,600-1,630 range amid a mildly positive bias.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the outlook remains cautiously optimistic, with selective bargain hunting for fundamentally sound blue-chip stocks expected to support the local market.

"The benchmark index has demonstrated resilience around 1,600 this week, although a sustained move above the 1,620 level may prove challenging without stronger buying participation.

"Next week, investors will also monitor Bank Negara Malaysia's monetary policy decision on Nov 5 and upcoming corporate earnings," he told Bernama.

Meanwhile, IPPFA Director of Investment Strategy and Country Economist Mohd Sedek Jantan said Malaysia's Manufacturing Purchasing Managers' Index (PMI), scheduled for release on Nov 2, will be an important indicator of underlying economic momentum.

He said the previous month's reading slipped below the 50-point threshold, signalling a contraction in manufacturing activity.

"A further deterioration could raise concerns over the resilience of the manufacturing sector, particularly against the backdrop of higher energy costs and external uncertainties.

"Conversely, an improvement in the PMI could reinforce confidence in domestic economic fundamentals and provide support for local equities," said Mohd Sedek.

On a Friday-to-Friday basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 4.04 points to 1,615.60 from 1,611.56 a week ago.

On the index board, the FBM Emas Index added 68.28 points to 12,061.73, the FBM Top 100 Index increased 66.25 points to 11,863.86, and the FBM Emas Shariah Index garnered 139.34 points to 12,082.91.

The FBM ACE Index rose 57.77 points to 5,403.91, and the FBM Mid 70 Index went up 250.36 points to 17,420.69.

By sector, the Energy Index advanced 17.49 points to 852.16, the Plantation Index gained 19.94 points to 8,697.42, and the Industrial Products and Services Index climbed 2.97 points to 178.37. The Financial Services Index tumbled 106.33 points to 18,547.99.

Weekly turnover increased to 15.53 billion units worth RM9.97 billion from 14.21 billion units worth RM12.55 billion in the previous week.

However, the Main Market volume fell to 5.13 billion units valued at RM8.83 billion versus 7.68 billion units valued at RM11.15 billion previously.

Warrants turnover decreased to 3.99 billion units worth RM608.01 million against 4.15 billion units worth RM514.80 million a week ago.

The ACE Market volume slid to 2.07 billion units valued at RM788.72 million from 2.37 billion units valued at RM889.53 million in the previous week.