The FTSE Bursa Malaysia KLCI (FBM KLCI) is anticipated to remain steady within a narrow range of 1,655 to 1,665 points next week as investors absorb the implications of the national Budget 2025 announced by Prime Minister Datuk Seri Anwar Ibrahim on Friday.
According to Mohd Sedek Jantan, Head of Investment Research at UOB Kay Hian Wealth Advisors, key measures include support for homeownership, providing provisions for 57,000 first-time homebuyers under the Syarikat Jaminan Kredit Perumahan (SJKP) scheme and offering tax relief of up to RM7,000 for three consecutive years for first-time buyers.
“These incentives are anticipated to benefit the property and construction sectors, along with their supply chains,” he told Bernama.
Although specifics were not fully disclosed, he mentioned that the technology sector is also expected to gain from the budget announcement. The government plans to introduce new incentives focused on high-value activities such as integrated circuit design and advanced materials, which are likely to provide positive momentum for the technology sector.
“We also expect foreign investors to continue participating in the capital market as the government remains committed to reducing the fiscal deficit to 4.3% this year and 3.8% next year. This aligns with the targets of the Public Finance and Financial Responsibility Act, aiming for a fiscal deficit of 3.0% and government debt below 60% of gross domestic product (GDP),” said Mohd Sedek.
He further explained that fiscal discipline reduces risks associated with sovereign debt, lowers borrowing costs, and strengthens the banking system. Consequently, the financial sector is expected to benefit from this improved fiscal environment, creating a more stable landscape for financial institutions.
On the economic data front, the Department of Statistics Malaysia is scheduled to release the latest GDP estimates, which could bolster investor confidence in the Malaysian economy.
“In conjunction with this, the government has revised the GDP forecast, reflecting optimism in the country’s economic growth,” added Mohd Sedek.
Regionally, investors will be keeping an eye on economic data releases from China and Japan, which could influence market sentiments. China’s loan prime rate announcement is expected on Monday, with no major surprises anticipated. Meanwhile, Tokyo’s inflation data may be a key focus as it could significantly influence the timing of the Bank of Japan’s next monetary policy move.
The local bourse traded mostly higher during the past week, tracking Wall Street and regional market performances, as well as the Budget 2025 announcement.
On a Friday-to-Friday basis, the FBM KLCI advanced 12.44 points to 1,645.99 from 1,633.55 in the previous week.
Across Bursa Malaysia’s index board, the FBM Emas Index added 84.78 points to 12,367.57, the FBM Emas Shariah Index rose 66.60 points to 12,276.95, the FBMT 100 Index gained 88.72 points to 12,067.57, the FBM 70 Index jumped 121.24 points to 17,717.63, while the FBM ACE Index declined 27.97 points to 5,120.80.
Sector-wise, the Industrial Products and Services Index edged up by 0.35 of a point to 176.42, the Energy Index was 27.57 points lower at 854.53, the Financial Services Index advanced 290.28 points to 19,468.56, while the Plantation Index gained 72.12 points to 7,273.53.
Turnover fell to 13.10 billion units worth RM12.87 billion, compared to 14.17 billion units valued at RM12.87 billion in the previous week.
The Main Market’s volume decreased to 6.88 billion shares valued at RM11.67 billion from 8.01 billion shares worth RM11.67 billion last week.
Warrants turnover expanded to 4.08 billion units worth RM660.53 million against 3.88 billion units worth RM529.21 million previously.
The ACE Market’s volume eased to 2.12 billion shares valued at RM617.58 million compared with 2.27 billion shares worth RM656.80 million previously. — BERNAMA