Bursa Malaysia Expected To Face Downward Pressure This Week

KUALA LUMPUR, Jun 2 – Bursa Malaysia is expected to face continued downward pressure this week as investors remain cautious, focusing on defensive sectors and avoiding riskier investments.

Maybank Investment Bank Bhd chartist Nik Ihsan Raja Abdullah said the FTSE Bursa Malaysia KLCI (FBM KLCI) may struggle to find an upward momentum unless there are unexpected positive developments in global or local economic data.

“Based on the recent global market developments, the benchmark index is expected to face a challenging week ahead. The persistent downward trend observed in the index, coupled with cautious market sentiment, indicates a continuation of market consolidation,” he told Bernama.

Moreover, Nik Ihsan said the FBM KLCI’s recent performance, characterised by a sixth straight day of decline and cautious trading, reflects ongoing concerns over global interest rate directions and inflationary pressures.

The local market has been devoid of fresh positive catalysts, leading to sustained selling pressure and profit-taking activities.

Meanwhile, the upcoming economic data, including Malaysia’s S&P Global Manufacturing PMI, will be closely watched.

“A weak reading could further dampen market sentiment. Moreover, global economic indicators, such as China’s Caixin Manufacturing PMI and US ISM Manufacturing PMI, will provide additional context for investor decisions,” he added.

During the week, Bursa Malaysia ended lower on cautious trading ahead of the announcements of key economic data in the United States, namely the country’s gross domestic product growth and inflation print on Thursday and Friday, respectively. Local investors also took profit ahead of the long weekend.

On a Friday-to-Friday basis, the FBM KLCI fell 22.72 points to 1,596.68 from last week’s 1,619.40.

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