Bursa Malaysia seen trading between 1,650 and 1,670 points next week

Bursa Malaysia is anticipated to fluctuate between 1,650 and 1,670 points in the coming week, with investor sentiment remaining subdued. This caution stems from profit-taking activities, a scarcity of new market-moving catalysts, and persistent worries about the global economic landscape, which has yet to show robust recovery.

Mohd. Rizal Palil, a professor at Universiti Kebangsaan Malaysia, suggested that a significant increase in selling pressure is possible if external sentiment continues to weaken. He observed that while some selected counters saw gains this week, the overall market sentiment remained cautious. "This increase was not strong enough to change the overall market sentiment," he noted. He added that much of the pressure comes from retail investors realizing short-term profits, a trend expected to continue and weigh on the main index.

The market is currently lacking new incentives to attract aggressive buying. "Without significant economic policy announcements or positive developments in global markets, most investors are expected to maintain a wait-and-see approach," Mohd. Rizal explained. He highlighted that while local market fundamentals are stable, short-term sentiment is heavily influenced by external factors, including the economic performance of major countries and geopolitical tensions.

Meanwhile, Prof. Datuk Dr. Mustafa Mohd. Hanefah from Universiti Sains Islam Malaysia forecasts a wider trading range of 1,640 to 1,680 points. He pointed out that the recent drop in global crude oil prices has had mixed effects. For oil-importing nations, lower prices can reduce costs and inflation. However, for Malaysia, closely linked to the energy and commodities sector, falling oil prices can dampen investor sentiment towards related stocks. "The movement of oil prices remains a key factor the market watches. The recent decline has made investors more cautious about energy-related sectors, which were previously major contributors to market performance," he said.