Rising mart participation to push Bursa upwards

KUALA LUMPUR: Bursa Malaysia is expected to see an uptrend next week as market participation and liquidity are likely to rise after being subdued during the holiday-shortened trading period, according to an economist.

IPPFA Sdn Bhd Director of Investment Strategy and Country Economist, Mohd Sedekjantan, said that as market players return from the year-end break, participation and liquidity are expected to increase meaningfully, allowing price discovery to better reflect improving macroeconomic signals.

“As liquidity normalises next week, this should translate into firmer risk appetite and a more supportive trading environment for Bursa Malaysia at the start of 2026,” he told Bernama.

Mohd Sedek also expects a more constructive tone to emerge as investors re-engage with the market and digest encouraging Malaysian Purchasing Managers’ Index (PMI) data, which indicate that the country’s manufacturing sector has returned to expansionary territory.

Bursa Malaysia ended the holiday-shortened trading week marginally lower amid a lack of fresh catalysts and subdued demand due to the year-end break. Nevertheless, the FTSE Bursa Malaysia KLCI (FBM KLCI) registered a new 2025 high of 1,684.53 on Tuesday, supported by persistent buying from local institutional investors.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng expects the FBM KLCI to trade within the range of 1,650 to 1,680 next week amid a constructive market tone.

On a week-on-week basis, the FBM KLCI declined 7.34 points to close at 1,669.76 from 1,677.10 previously. The FBM Emas Index fell 31.70 points to 12,256.44, while the FBMT 100 Index shed 32.01 points to 12,058.66.

The FBM Emas Shariah Index dropped 39.11 points to 12,066.50. In contrast, the FBM 70 Index gained 49.90 points to 16,852.47 and the FBM ACE Index added 63.48 points to close at 4,923.27.

Sector-wise, the Financial Services Index declined 38.39 points to 19,589.99, the Plantation Index lost 28.43 points to 8,271.09, and the Industrial Products and Services Index edged down 1.87 points to 172.16. The Energy Index, however, rose one point to 766.77.

Weekly turnover eased to 7.88 billion units valued at RM7.42 billion from 7.96 billion units worth RM6.79 billion a week earlier. Main Market volume slipped to 4.58 billion units worth RM6.75 billion.

Warrants turnover declined to 2.16 billion units valued at RM229.36 million, while ACE Market volume rose to 1.13 billion units valued at RM444.17 million.