FBM KLCI Eyes 1,600-1,620 Range on Dip-Buyer Demand

Quick Answer: Rakuten Trade expects the FBM KLCI to trade within 1,600-1,620 next week, with a mildly positive bias. Elevated crude oil prices, geopolitical uncertainties and persistent foreign selling could trigger intermittent volatility. The index closed the week at 1,611.56, so shareholders in banking, plantation and utilities stocks may want to monitor those sectors.

The FBM KLCI is projected to trend upwards on Bursa Malaysia next week, according to Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd. Thong told Bernama that bargain hunting is expected to intensify as valuations become more attractive.

Why Could the FBM KLCI Trade Within 1,600-1,620 Next Week?

FBM KLCI outlook: Dip-buyers could lift Bursa next week, but oil and foreign selling may rattle it — Bursa Malaysia trading screen, FBM KLCI outlook for the week ahead

Thong said the FBM KLCI should trade within the 1,600-1,620 range, with a mildly positive bias. The call rests on selective accumulation of fundamentally sound stocks, he said.

Malaysia’s resilient economic fundamentals and relatively contained inflation should continue to underpin corporate earnings, Thong added.

What Did the FBM KLCI Close At This Week?

The benchmark rose 3.80 points to 1,611.56 from 1,607.76 a week earlier. Other indices moved as follows:

FBM Emas Index: up 1.18 points to 11,993.45
FBM Top 100 Index: up 10.84 points to 11,797.61
FBM Emas Shariah Index: up 23.70 points to 11,943.57
FBM ACE Index: down 84.93 points to 5,346.14
FBM Mid 70 Index: down 55.61 points to 17,170.33

Bursa traded mostly lower during the week, in tandem with most regional markets. Wall Street’s performance weighed on sentiment over concerns about artificial intelligence (AI) investment sustainability.

Which Sectors Show Attractive Valuations for the FBM KLCI?

Thong said the recent correction brought selected blue chip stocks to more attractive valuations. He named banking, plantation and utilities as the focus sectors.

Plantation Index: up 44.60 points to 8,677.48
Energy Index: up 13.67 points to 834.67
Industrial Products and Services Index: up 2.61 points to 175.4
Financial Services Index: down 97.50 points to 18,654.32

The Financial Services Index fell the most among the sector gauges this week. Investors holding banking names may want to check that sector’s weekly drop against their own positions.

What Could Rattle the FBM KLCI Next Week?

Rakuten Trade flagged three risks: elevated crude oil prices, geopolitical uncertainties and persistent foreign selling. Together, these could trigger intermittent volatility on Bursa Malaysia.

Foreign selling remains the risk most directly tied to Bursa’s liquidity. Thong’s view is that it could cap the gains from dip-buying.

How Thin Was Bursa Malaysia Trading Last Week?

Weekly turnover fell to 14.21 billion units worth RM12.55 billion, down from 16.41 billion units worth RM15.57 billion the week before.

Main Market: 7.68 billion units worth RM11.15 billion, versus 9.58 billion units worth RM13.89 billion
Warrants: 4.15 billion units worth RM514.80 million, versus 4.23 billion units worth RM573.41 million
ACE Market: 2.37 billion units worth RM889.53 million, versus 2.60 billion units worth RM1.01 billion

This article is for general information only and does not constitute investment advice. Do your own research before making any investment decision.

Key Takeaways for the FBM KLCI Outlook

Rakuten Trade expects the FBM KLCI to trade within 1,600-1,620 next week, with a mildly positive bias.
The index closed at 1,611.56, up 3.80 points on the week.
Attractive valuations are noted in banking, plantation and utilities.
Risks include high oil prices, geopolitical uncertainties and foreign selling.
Weekly turnover fell to RM12.55 billion from RM15.57 billion.

Frequently Asked Questions

What is the FBM KLCI forecast for next week?

Rakuten Trade expects the FBM KLCI to trade within the 1,600-1,620 range next week. The index closed the past week at 1,611.56, up 3.80 points.

Which sectors does Rakuten Trade see as attractively valued?

Thong Pak Leng pointed to banking, plantation and utilities after the recent correction. The Plantation Index gained 44.60 points to 8,677.48 last week.

Why could foreign selling affect Bursa Malaysia?

Persistent foreign selling could trigger intermittent volatility on Bursa Malaysia, according to Rakuten Trade. It is one of three risks flagged alongside high oil prices and geopolitical uncertainties.

How much did Bursa Malaysia trading volume drop last week?

Weekly turnover fell to 14.21 billion units worth RM12.55 billion, from 16.41 billion units worth RM15.57 billion the week before. The Main Market volume decreased to RM11.15 billion from RM13.89 billion.

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