Bursa Malaysia expected to edge higher next week on bargain hunting

KUALA LUMPUR, May 23 — Bursa Malaysia is expected to trade with a slight uptrend next week following the recent market pullback as bargain-hunting activities and improved investor sentiment may provide support to selected heavyweights.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said that with the rebound seen on Friday potentially extending into the coming week as the earlier sell-off may begin attracting bargain-hunting activities, particularly within defensive and high-dividend sectors.

“While external sentiment remains influenced by elevated US Treasury yields, inflation concerns and geopolitical uncertainties, the broader medium-term trend of the local market continues to display relative resilience, supported by stable domestic institutional liquidity.

“We also believe Nvidia’s stronger-than-expected earnings and continued optimism surrounding artificial intelligence-related spending trends could provide continuity in positive global technology sentiment, which may indirectly support regional equity markets including Bursa Malaysia,” he told Bernama.

Technically, he said a sustained hold above the 1,700-1,705 support region could allow the benchmark index to rebound towards the 1,725-1,730 resistance zone, although upside momentum may remain measured unless accompanied by stronger foreign inflows and improved global risk sentiment.

This week, the Department of Statistics Malaysia (DOSM) said Malaysia’s Consumer Price Index (CPI) rose 1.9 per cent year-on-year (y-o-y) in April 2026 to 136.9, while labour productivity stood at RM45.50 per hour worked in the first quarter of 2026 (1Q 2026), growing by 4.8 per cent.

On the broader picture, the national economy continued to grow by 5.4 per cent in 1Q 2026, compared with 6.2 per cent in the previous quarter.

For the week just ended, Bursa Malaysia traded mostly lower as weakening global risk sentiment weighed on investor confidence.

On a weekly basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 27.55 points to 1,712.67 from 1,740.22 a week earlier.

On the index board, the FBM Emas Index decreased 188.64 points to 12,706.23, the FBMT 100 Index weakened by 186.55 points to 12,546.76, the FBM Emas Shariah Index slipped 178.68 points to 12,644.17, the FBM Mid 70 Index declined 206.71 points to 18,298.30 and the FBM ACE Index shed 16.77 points to 4,725.97.

By sector, the Plantation Index edged down 1.16 points to 8,584.27, the Energy Index slid by 16.34 points to 792.55, the Financial Services Index shaved 257.21 points to 19,997.10, while the Industrial Products and Services Index inched up 0.68 of a point to 200.630.

Weekly turnover weakened to 18.19 billion units valued at RM17.65 billion from 21.10 billion units valued at RM16.89 billion a week earlier.

The Main Market volume fell to 9.49 billion units valued at RM15.69 billion from 11.53 billion units valued at RM14.79 billion previously.

Warrants turnover trimmed to 4.84 billion units valued at RM614.26 million compared with 5.86 billion units valued at RM811.42 million million last week.

The ACE Market volume dropped to 3.58 billion units valued at RM1.42 billion from 3.69 billion units valued at RM1.28 billion in the previous week.

Bursa Malaysia will be closed on May 27 in conjunction with the Aidiladha public holiday and will resume operations on May 28.

It would also be closed on June 1 and 2 for the King’s Birthday and Wesak Day holidays before resuming operations on June 3. — Bernama

المصدر: Malay Mail