Bursa to trade cautiously this week amid FOMC cues

KUALA LUMPUR: Bursa Malaysia is expected to trade cautiously this week as investors continue to monitor developments in West Asia, crude oil prices and cues from the upcoming US Federal Open Market Committee or FOMC meeting on the interest rate outlook, an analyst says.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the latest US President Donald Trump’s proposed 10% to 12.5% forced labour tariffs would influence market sentiment, as investors assess their impact on global trade, supply chains and export-oriented economies.

“Sector leadership is expected to shift from tactical growth sectors to more defensive areas such as healthcare, commodities and oil and gas, as investors seek earnings resilience in the face of increased market volatility.

“As long as the FBM KLCI remains above the 1,695-1,700 territory, we believe the broader uptrend remains intact, although near-term gains are likely to remain measured as investors await clarity from key economic events and geopolitical situation,” he told Bernama.

On a Friday-to-Friday basis, the key index fell 30.43 points to 1,701.02 from 1,731.45 a week earlier. On the index board, the FBM Mid 70 Index expanded 115.91 points to 17,890.83 and the FBM ACE Index added 47.72 points to 4,926.87.

The FBM Emas Index slipped 129.55 points to 12,589.54, the FBMT 100 Index shrank 145.60 points to 12,411.96, and the FBM Emas Shariah Index slid 38.22 points to 12,444.25.

By sector, the Plantation Index tumbled 182.79 points to 9,300.98, the Energy Index inched up 7.55 points to 773.83, the Financial Services Index slumped 478.25 points to 20,057.11, while the Industrial Products and Services Index added 1.13 points to 187.86.

Weekly turnover decreased to 16.43 billion units worth RM12.09bil from 17.82 billion units worth RM13.68bil a week earlier. The Main Market volume narrowed to 9.01 billion units valued at RM10.72bil against 9.22 billion units valued at RM12.10bil previously.