KUALA LUMPUR (Bernama): Bursa Malaysia is expected to trend modestly higher this week, driven by bargain-hunting and optimism surrounding domestic developments.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan anticipates trading will remain within a narrow range as investors weigh optimism about local opportunities against caution over global uncertainties.
Speaking to Bernama, Mohd Sedek highlighted Malaysia’s strong economic fundamentals as a cornerstone for investor confidence.
"These robust fundamentals provide stability and attract sustained investment, even amidst external challenges,” he said.
On the global front, Mohd Sedek noted that the December 2024 non-farm payroll report, released on Friday, showed stronger-than-expected growth, surpassing median analyst forecasts.
While the data underscores a healthy labour market, it also triggered market volatility, as investors had hoped for weaker figures to bolster the likelihood of a Federal Reserve rate cut.
He added that the unexpected strength in employment reduces the probability of two rate cuts in 2025, as previously anticipated.
Domestically, Mohd Sedek pointed to the formalisation of the Johor-Singapore Special Economic Zone (JS-SEZ) Agreement, signed by Malaysian and Singaporean leaders, as a pivotal development.
Projects such as Forest City, the Pengerang Integrated Petroleum Complex, and Desaru, along with the six key zones under Iskandar Malaysia, position the JS-SEZ as an industrial hub with the potential to grow to twice the size of Shenzhen.
"We view this agreement as a structural positive for Malaysia, supporting the ongoing investment upcycle and bolstering long-term market sentiment,” he said.
On a Friday-to-Friday basis, the key index declined 27.05 points to 1,602.41 from 1,629.46 in the prior week.
The FBM Emas Index dropped 230.87 points to 12,302.77, the FBMT 100 Index fell 219.05 points to 11,983.84, and the FBM Emas Shariah Index declined 295.75 points to 12,250.74.
The FBM 70 Index tumbled 399.79 points to 18,467.54, while the FBM ACE Index fell 119.09 points to 5,353.47.
By sector, the Financial Services Index dropped 98.52 points to 18,924.54, the Plantation Index eased 87.89 points to 7,510.62, and the Healthcare Index slid 102.51 points to 2,259.52.
The Technology Index edged down 2.23 points to 62.58, the Energy Index lost 18.0 points to 833.30, and the Industrial Products and Services Index fell 3.79 points to 170.66.
Turnover widened to 16.98 billion units worth RM14.37 billion from 11.30 billion units worth RM8.98 billion the previous week.
Main Market volume rose to 8.71 billion units valued at RM12.78 billion compared with 6.10 billion units valued at RM8.05 billion previously.
Warrants turnover strengthened to 5.51 billion units worth RM556.96 million from 3.28 billion units worth RM315.05 million.
The ACE Market volume increased to 2.75 billion units valued at RM1.03 billion from 1.91 billion units valued at RM613.73 million in the prior week. - Bernama
