Bursa Malaysia Expected to Trade Between 1,740 and 1,750 This Week With Upside Bias

KUALA LUMPUR, AUGUST 2026 — Bursa Malaysia is expected to remain range-bound this week but retain a slight upward bias, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) projected to move between 1,740 and 1,750 points.

IPPFA Sdn Bhd investment strategist and economist Mohd Sedek Jantan said Malaysia’s resilient domestic fundamentals should continue providing support to the local equity market despite uncertainties in the external environment.

However, he cautioned that improving opportunities in regional private-equity and equity markets could encourage institutional investors to shift some capital away from the FBM KLCI, particularly because the benchmark has a relatively defensive composition and limited exposure to some high-growth sectors.

Among the major factors expected to influence market sentiment are oil prices, developments in Iran-US tensions and China’s July economic activity data.

Malaysia’s latest economic figures offer a positive backdrop for investors.

Bank Negara Malaysia reported that the economy expanded by 6.0% year-on-year in the second quarter of 2026, accelerating from 5.4% in the first quarter and exceeding the earlier 5.8% advance estimate.

The second-quarter expansion was supported by continued domestic demand and strong exports. Services grew by 5.9%, while manufacturing expanded by 7.3%, according to BNM data.

Malaysia’s central bank currently expects full-year GDP growth to remain within a 4.0% to 5.0% range, with recent economic developments suggesting growth could come in around the upper end of that forecast.

The stronger domestic economic picture could help offset some of the volatility caused by global market developments.

Rakuten Trade Sdn Bhd head of research Kenny Yee said the Malaysian market had not experienced significant pressure in recent sessions, helped partly by signs of easing inflation in the United States.

Nevertheless, investors are expected to keep a close watch on upcoming US retail sales data. A stronger-than-anticipated reading could trigger some profit-taking as markets reassess the outlook for interest rates and economic growth.

Technology and artificial intelligence-related corporate earnings are also expected to remain an important focus for investors as the global AI investment cycle continues to influence technology stocks and wider market sentiment.

Despite the cautiously positive outlook for the coming sessions, Bursa Malaysia ended the previous week lower.

On a Friday-to-Friday basis, the FBM KLCI declined 8.36 points to 1,727.39, compared with 1,735.75 the previous week.

The broader FBM Emas Index fell 18.81 points to 12,815.44, while the FBM Top 100 Index declined 33.94 points to 12,626.26. The FBM Emas Shariah Index also slipped 34 points to 12,629.23.

In contrast, the FBM Mid 70 Index gained 66.67 points, while the FBM ACE Index jumped 214.83 points to 5,294.78, indicating stronger activity among selected mid-cap and smaller-growth counters.

Sector performance was mixed during the week.

The Financial Services Index dropped 80.50 points to 20,336.03, while the Plantation Index declined 213.68 points to 9,327.40.

The Energy Index, however, added 21.07 points to 779.46, while the Industrial Products and Services Index slipped marginally by 0.77 points to 187.23.

Weekly market volume increased to 17.66 billion units valued at RM14.42 billion, compared with 16.22 billion units valued at RM15.34 billion in the preceding week.

Trading on the Main Market also increased in volume to 8.91 billion shares, while ACE Market volume climbed to 3.42 billion units worth RM1.11 billion.

Although analysts see potential for the benchmark index to move higher, the projected narrow trading range suggests investors are likely to remain selective rather than aggressively chase the broader market.

Malaysia’s stronger-than-expected GDP growth provides an important domestic catalyst, but movements in global technology stocks, commodity prices, US economic data, developments in China and geopolitical risks could continue shaping near-term sentiment.

For now, the 1,740-1,750 region represents the key range to watch as investors assess whether Bursa Malaysia can regain momentum following last week’s decline.