Trading on Bursa Malaysia likely to remain cautious this week

KUALA LUMPUR: Cautious trading is set to continue on Bursa Malaysia this week, driven by the bearish outlook on the global economy amid rising geopolitical tensions in the Middle East.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said despite Hong Kong’s Hang Seng continuing its upward trend, supported by optimism surrounding China’s ongoing stimulus measures, most other emerging markets, including Malaysia, remained subdued, mirroring the cautious global mood.

“We remain cautious in our outlook for the local market, as sentiment has temporarily weakened.

“However, with undemanding valuations and stable economic fundamentals, we expect the FBM KLCI to stay in consolidation mode and trade range-bound next week with an upside bias, awaiting bargain-hunting opportunities,” he told Bernama.

He said the market could see a more sustained upward movement if the local benchmark index breaks above key resistance levels, particularly the 50-day exponential moving average at around 1,650.

“As such, we anticipate the benchmark index to trend within the range of 1,625 to 1,640, which represents the support and resistance levels,” he said.