FBM KLCI SET TO TEST 1,500-LEVEL NEXT WEEK ON IMPROVED SENTIMENT

By Abdul Hamid A Rahman

KUALA LUMPUR, April 19 (Bernama) -- Key market index FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to continue testing the 1,500-point psychological level next week, with a sustained breakout likely to boost investor confidence and attract foreign inflows.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said he remained optimistic about the local bourse’s near-term prospects, noting that sentiment remains buoyant, underpinned by a stronger ringgit, attractive equity valuations, and improving market conditions.

“From a technical standpoint, the FBM KLCI is likely to continue testing the key psychological resistance at the 1,500-level next week. We anticipate the benchmark index to trend within a range of 1,490 to 1,510, with 1,490 serving as the immediate support and 1,510 as the resistance,” he told Bernama. 

Thong said should the key index maintain its position above this level for a longer period, it would form a solid base for further rallies, thereby restoring investor confidence and drawing fresh interest into the market.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the key focal point for the coming week will be the Malaysian delegation’s visit to Washington, led by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, for discussions on tariff-related issues.

“Markets are cautiously optimistic, anticipating a pragmatic outcome given Tengku Zafrul’s proven track record in trade diplomacy. The establishment of a clear framework to address lingering Donald Trump-era tariffs could lift investor sentiment further, particularly for export-oriented counters,” he said.

However, Mohd Sedek said any signs of policy ambiguity or lack of progress may trigger short-term volatility, prompting investors to adopt a more defensive stance, especially towards large-cap defensive stocks.

He added that the near-term trajectory of the FBM KLCI remains tilted to the upside, supported by improving sentiment, appealing valuations, and sectoral strength in domestically driven counters.

On a Friday-to-Friday basis, the key index gained 44.64 points to 1,499.40 from 1,454.76 a week earlier.

The FBM Emas Index advanced 311.42 points to 11,121.50, the FBMT 100 Index improved by 303.06 points to 10,904.73, and the FBM Emas Shariah Index strengthened by 305.22 points to 10,910.13, the FBM 70 Index gained 347.70 points to 15,613.63, and the FBM ACE Index rose 163.19 points to 4,575.38.

By sector, the Industrial Products and Services Index added 5.65 points to 145.08, the Financial Services Index climbed 498.99 points to 18,033.52, the Plantation Index appreciated 163.85 points to 7,226.38, and the Energy Index expanded 17.13 points to 665.87.

However, the Healthcare Index eased 6.48 points to 1,869.85.

Turnover slipped to 13.43 billion units valued at RM8.48 billion from 19.65 billion units valued at RM17.56 billion in the preceding week.

The Main Market volume shrank to 6.30 billion units worth RM7.33 billion, compared with 11.09 billion units worth RM14.08 billion previously.

Warrants turnover decreased to 5.53 billion units worth RM638.12 million from 6.18 billion units worth RM524.37 million in the prior week.

Meanwhile, the ACE Market volume fell to 1.59 billion units valued at RM504.28 million, from 2.35 billion units valued at RM699.77 million previously.

-- BERNAMA