Bursa Malaysia To See Cautious Trading Next Week Amid US-China Trade War -- Analysts
By Rosemarie Khoo Mohd Sani
KUALA LUMPUR, Feb 8 (Bernama) -- Bursa Malaysia is expected to see cautious trading next week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) set to fluctuate between 1,580 and 1,600 points, said an analyst.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng market players will likely focus their attention on construction, utilities, and technology given the recent positive sentiment and developments in the sectors.
He said the outlook for the equity market remains uncertain following the United States (US)-China trade war.
“Traders may want to be careful and take a wait-and-see approach before making their next move,” he told Bernama.
SPI Asset Management managing partner Stephen Innes said Bursa Malaysia headed into the weekend riding a wave of optimism, buoyed by “trade war lite” expectations and a broader bounce in Asian sentiment, thanks in part to the artificial intelligence (AI)-fueled tech frenzy ignited by DeepSeek.
But while sentiment remains cautiously upbeat, the balance of risks still hinges squarely on US trade policy, with the ultimate wildcard being how aggressive US President Donald Trump goes on China.
He noted that the key date remains April 1, when Trump has tasked his trade advisors with delivering a tariff rollout blueprint.
Until then, the market seems inclined to price in some degree of de-escalation, betting on a potential compromise rather than an all-out trade war.
“As long as that mindset holds, we’re unlikely to see a major sell-off in local shares. However, the risk of further tariffs remains, and that lingering uncertainty means investors will likely stay in a wait-and-see mode, cautiously optimistic but certainly not overcommitted.
“For now, I see support around 1,580 and resistance near 1,610, but these are just guideposts. A more hawkish or dovish shift in Trump’s trade stance next week could easily shake things up.
“Investors would do well to stay nimble, as this market remains highly reactive to the latest trade war headlines,” said Innes.
For this trading week, the FBM KLCI trended mostly higher on bargain hunting mainly in construction, utilities and financial services counters, supported by the Johor-Singapore Special Economic Zone initiatives and the ongoing data centre developments in the country.
On the external front, market players were cautious about Trump’s tariff policy.
Over the past week, he announced a 25 per cent tariff on imports from Mexico and Canada, but the tariffs were temporarily paused after negotiations.
The US, however, imposed an additional 10 per cent tariff on Chinese imports as part of the ongoing trade measures.
On a Friday-to-Friday basis, the FBM KLCI strengthened by 33.99 points to 1,590.91 compared with 1,556.92 a week earlier.
The FBM Emas Index gained 265.82 points to 12,149.53, the FBMT 100 Index jumped 264.16 points to 11,840.06, and the FBM Emas Shariah Index perked up 248.50 points to 11,985.64.
The FBM ACE Index rose 65.28 points to 5,260.35 while the FBM 70 Index surged 446.51 points to 18,033.53.
By sector, the Financial Services Index climbed 379.08 points to 19,233.44, the Plantation Index went up by 108.30 points to 7,453.90, and the Industrial Products and Services Index improved 1.14 points to 166.51.
The Energy Index edged up 3.12 points to 826.44, the Healthcare Index advanced 73.41 points to 2,235.62, and the Technology Index added 2.50 points to 60.67.
Turnover soared to 13.05 billion units valued at RM10.46 billion from 6.42 billion units worth RM6.30 billion in the preceding week.
The Main Market volume expanded to 6.27 billion units worth RM9.04 billion against 3.34 billion units valued at RM5.67 billion previously.
Warrants turnover increased to 4.25 billion units valued at RM452.29 million versus 2.0 billion units worth RM177.39 million last week.
The ACE Market volume widened to 2.52 billion units worth RM968.79 million from 1.07 billion units valued at RM454.31 million previously.
-- BERNAMA
