Bursa Malaysia Set for Cautious Week Amid Global Uncertainties

Bursa Malaysia's benchmark index is expected to remain cautious next week amidst global uncertainties. The Federal Reserve's latest policy decision, developments in West Asia, oil prices, and shifts in US interest rate expectations are set to influence investor sentiment.

Higher oil prices and geopolitical uncertainty could keep inflation expectations elevated, while shifts in US interest rate expectations may continue to influence global bond yields, the US dollar, and emerging-market flows. In response, investors are likely to remain defensive with a greater focus on sectors offering resilient earnings and domestic or commodity-linked exposure.

Rakuten Trade Sdn Bhd's vice-president of equity research Thong Pak Leng expects the benchmark index to trade within the 1,650-1,680 range next week, with a sustained move above 1,675-1,680 needed for stronger upward momentum. However, foreign selling and expectations of further US monetary tightening may cap the upside.