Bursa Malaysia to trade higher next week on US rate cut, upcoming 13MP debate
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research, Mohd Sedek Jantan, said the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade within the 1,545 to 1,555 range.
He noted that export-oriented stocks are expected to lead the rebound, with technology counters poised to benefit benefit from both global supply chain repositioning and the country's ongoing digitalisation agenda.
"The 13MP unveiled by the Prime Minister Datuk Seri Anwar Ibrahim on Thursday anchors the medium-term policy around geoeconomic resilience, supply chain realignment, and digital transformation.
"Of particular note is the plan's emphasis on artificial intelligence, which reinforces our constructive view on the long-overdue re-rating of the technology sector," he told Bernama.
Mohd Sedek also noted that recent domestic data supports the case for recovery, highlighting the S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI), which rose for the third consecutive month—from 49.3 in June to 49.7 in July.
"While the index remains just below the expansion threshold, the steady improvement signals ongoing stabilisation in the manufacturing sector," he said.
Furthermore, Malaysian equities remain undervalued compared to regional peers as investors shift their focus to China's July trade data, which is due next Thursday.
"As such, we remain cautiously optimistic that foreign investors will return as net buyers, particularly as they look to diversify away from the overstretched US equity markets.
On a weekly basis, the benchmark index eased 0.41 of-a-point to 1,533.35 on Friday from 1,533.76 a week earlier.
The FBM Emas Index increased 18.51 points to 11,525.33, the FBMT 100 Index gained 15.91 points to 11,285.63, and the FBM Emas Shariah Index climbed 11.78 points to 11,540.76.
The FBM 70 Index increased 106.305 points to 16,607.57 while the FBM ACE Index dropped 14.65 points to 4,624.37.
By sector, the Financial Services Index put on 25.97 points to 17,480.2, the Energy Index went up 9.75 points to 749.60, while the Plantation Index decreased 63.82 points to 7,370.97.
Weekly turnover expanded to 15.94 billion units worth RM11.88 billion from 11.92 billion units worth RM11.43 billion in the previous week.
The Main Market volume swelled to 8.33 billion units valued at RM10.46 billion compared with 6.63 billion units valued at RM9.70 billion previously.
Warrants turnover declined to 5.50 billion units worth RM859.03 million from 7.10 billion units worth RM1.15 billion in the preceding week.
The ACE Market volume improved to 2.10 billion units valued at RM561.51 million versus 1.68 billion units valued at RM577.05 million a week ago.
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