Bargain hunting seen on Bursa Malaysia from Monday (Sept 28), likely to trade within the 1,660-1,690 range
Bursa Malaysia is expected to see bargain hunting this week with the FBM KLCI likely trading between 1,660 and 1,690. Analysts note that elevated US Treasury yields continue to pressure regional fund flows, though recent corrections have made blue-chip valuations more attractive.
Why it matters
Understanding regional market performance helps investors gauge capital flows and stability in Southeast Asian equities amid global economic pressures.
KUALA LUMPUR (Bernama): Bursa Malaysia is expected to see bargain hunting this week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) likely to trade within the 1,660-1,690 range, said an analyst.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said investors are expected to remain wary of the Malaysian market as elevated United States Treasury yields could continue to pressure regional fund flows, although the recent correction has brought selected blue-chip valuations to more attractive levels.
He said the market’s direction would also depend on developments in global bond yields and investor risk appetite.
"With the FBM KLCI’s relative strength index at around 35, near oversold territory, we expect bargain hunting to emerge in fundamentally strong heavyweights, particularly banks and defensive names, should external conditions stabilise.
"Nevertheless, 1,670 remains a key resistance level, which could cap the near-term recovery,” he told Bernama.
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