Bargain Hunting Expected To Support FBM KLCI Next Week

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Jan 18 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to extend its upward momentum in the coming week, building on Friday’s rebound following four days of sell-off, said an analyst.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said continued bargain hunting is anticipated to support the index’s recovery.

“As of Jan 17, the FBM KLCI has recorded a year-to-date decline of 4.60 per cent or 75.61 points, which we believe presents a timely opportunity for investors to accumulate blue-chip stocks.

“The United States (US) earnings season is also expected to serve as a key catalyst for investor sentiment,” he told Bernama.

He said despite persistent market volatility driven by dynamic conditions, Malaysia’s economic fundamentals remain solid.

According to the Department of Statistics Malaysia, gross domestic product (GDP) growth for the fourth quarter of 2024 (4Q) is projected at 4.8 per cent, bringing the full-year growth to 5.1 per cent.

This highlights the resilience of Malaysia’s economy amid a challenging global economic environment, Mohd Sedek said.  

Additionally, China’s 2024 GDP data, released last Friday, showed an acceleration from a 4.6 per cent year-on-year growth in the third quarter of 2024 to 5.4 per cent in 4Q, culminating in a full-year growth rate of 5.0 per cent. 

“China’s robust economic performance, driven by increased external demand that helped meet its GDP target, is a positive development for Malaysia, given the strong trade ties between the two nations and the potential benefits for Malaysia’s export-driven sectors.

“Furthermore, retail sales in China showed encouraging signs of recovery, rising from 3.0 per cent y-o-y growth in November 2024 to 3.7 per cent in December, which strengthens regional demand and boosts prospects for Malaysian exports,” he added.

On Monday, Mohd Sedek said, global attention will shift to US President-elect Donald Trump’s inauguration, which could reignite interest in themes such as the technology sector, small-cap stocks and cryptocurrencies.

“Investors remain optimistic about pro-growth policies, including tariffs and potential tax cuts.

“However, with US markets closed on Monday for Martin Luther King Jr Day, Asian markets will take the lead in reacting to the inauguration, guided by Wall Street’s performance from the prior session,” he said.

On a Friday-to-Friday basis, the FBM KLCI declined 35.69 points to 1,566.72 from 1,602.41 a week earlier.

The FBM Emas Index dropped 293.94 points to 12,008.23, the FBMT 100 Index fell 287.89 points to 11,695.97, and the FBM Emas Shariah Index lost 385.08 points to 11,865.66.  

The FBM 70 Index tumbled 521.66 points to 17,945.88 while the FBM ACE Index declined 177.21 points to 5,176.26.  

By sector, the Financial Services Index reduced 115.67 points to 18,808.87, the Plantation Index eased 174.18 points to 7,336.44, the Healthcare Index slid 67.54 points to 2,191.98, the Technology Index edged down 1.84 points to 60.74, and the Industrial Products and Services Index fell 4.01 points to 166.65.

However, the Energy Index added 7.25 points to 840.55,

Turnover decreased to 16.31 billion units worth RM14.50 billion this week from 16.98 billion units worth RM14.37 billion in the preceding week.  

The Main Market volume fell to 8.41 billion units valued at RM13.19 billion compared with 8.71 billion units valued at RM12.78 billion previously.  

Warrants turnover reduced to 5.24 billion units worth RM497.54 million from 5.51 billion units worth RM556.96 million in the week before.  

The ACE Market volume dropped to 2.55 billion units valued at RM811.14 million from 2.75 billion units valued at RM1.03 billion previously.  

-- BERNAMA