Malaysia Bourse to Trade Cautiously Amid FOMC Cues, West Asia Tensions

Bursa Malaysia is expected to trade cautiously next week as investors continue to monitor developments in West Asia, crude oil prices, and cues from the upcoming US Federal Open Market Committee (FOMC) meeting on interest rate outlook.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said that the latest US President Donald Trump's proposed 10 per cent to 12.5 per cent forced labor tariffs will influence market sentiment, as investors assess their impact on global trade, supply chains, and export-oriented economies.

Sector leadership is expected to shift from tactical growth sectors to more defensive areas such as healthcare, commodities, and oil and gas, as investors seek earnings resilience in the face of increased market volatility.

The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 30.43 points to 1,701.02 from 1,731.45 a week earlier on a Friday-to-Friday basis.