KUALA LUMPUR: Bursa Malaysia is likely to remain cautious this week as investors are bracing for a cautious start to 2025, with eyes fixed on the US President Inauguration Day scheduled on Jan 20, says 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 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 Statistics Department 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 said.
