KUALA LUMPUR: The Composite Index (CI) of Bursa Malaysia is expected to be rangebound with an upside bias next week, moving in the 1,610-1,630 points range.
Rakuten Trade equity research vice-president Thong Pak Leng anticipates continued buying interest, fuelled by expectations of a US interest rate cut in September.
"This sentiment creates a rangebound market with an upside bias. However, profit-taking activities are likely to occur around the 1,620-1,630 levels, which may cap any significant upward movement," he told Bernama.
Key sectors to watch include utilities and banks, where investor interest is expected to be strong.
"Despite the potential for profit-taking, the overall buying momentum remains intact, suggesting a steady performance for the index within the specified range.
"Investors are advised to monitor these sectors closely and stay updated on global economic cues, particularly from the United States, which may influence market movements," he said.
During the week, Bursa Malaysia experienced fluctuations but ended higher overall. On Tuesday, the market rebounded by over one per cent due to bargain hunting following the previous week's selloff.
Although the key index dipped slightly due to profit-taking, it remained above the 1,600 psychological level. The market saw gains from bargain hunting on lower-priced stocks and ended the week on a strong note, driven by positive investor sentiment and robust buying interest in commodity-related stocks.
On a Friday-to-Friday basis, the FBM KLCI rose 21.18 points to 1,617.86 from last week's 1,596.68.
On the index board, the FBM Emas Index gained 195.34 points to 12,356.86, the FBM 70 Index surged 313.34 points to 17,794.88, and the FBMT 100 Index increased 170.80 points to 11,940.46.
The FBM Emas Shariah Index advanced 261.17 points to 12,653.53 and the FBM ACE Index climbed 187.75 points to 5,577.32.
Sector-wise, the Financial Services Index was 116.05 points higher at 17,642.27, the Industrial Products and Services Index added 2.79 points to 197.65, the Energy Index edged up 1.87 points to 969.23 and the Plantation Index expanded 73.93 points to 7,145.33.
The Healthcare Index increased by 101.81 points to 2,191.07 and the Technology Index climbed 2.45 points to 75.13.
For the week just ended, turnover dropped to 19.82 billion units worth RM15.89 billion against 26.03 billion units worth RM22.25 billion in the preceding week.
The Main Market volume was lower at 11.84 billion shares valued at RM13.87 billion from 15.21 billion shares valued at RM18.61 billion a week ago.
Warrant turnover decreased to 3.80 billion units worth RM471.06 million versus 5.95 billion units worth RM837.01 million last week.
The ACE Market volume fell slightly to 4.17 billion shares valued at RM1.54 billion compared to 4.81 billion shares valued at RM1.68 billion previously.
TAGS: Bursa Malaysia, FBM KLCI, Weekly, Rakuten Trade, thong pak leng