KUALA LUMPUR: The FTSE Bursa Malaysia (FBM) KLCI is expected to stay choppy this month after a three per cent rally in December 2024.
Hong Leong Investment Bank (HLIB Research) said factors that could affect the index include lingering political risks, China's economic works, policies under Donald Trump's second presidency, and the upcoming decisions by the Bank of Japan and Federal Open Market Committee.
"However, downside risk may be cushioned near the 1,600-1,623 zones, buoyed by the signing of the Johor-Singapore Special Economic Zone agreement today, Malaysia's resilient growth and robust investment pipeline, and a more stable political climate," it said in a note.
The FBM KLCI fell 3.4 points to 1,629.5 following a renewed weakness in the ringgit and a tepid manufacturing Purchasing Manager's Index in December.
RHB Research, however, noted that market breadth improved to 1.32 vs 0.54 a day ago, boosted by a 40 per cent surge in trading volume to 3.7 billion shares valued at RM2.87 billion as trading interest shifted to small caps and lower liners.