Bursa Malaysia to trade cautiously next week amid FOMC cues, Middle East developments
Bursa Malaysia is expected to trade cautiously this week as investors continue to monitor developments in the Middle East.
Source: RSS · Bernama · July 29, 2026 at 7:15 PM · AI-assisted report
BURSA MALAYSIA, 30 JULY 2026 —
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Bursa Malaysia is expected to trade cautiously next week as investors continue to monitor developments in the Middle East, crude oil prices, and cues from the upcoming US Federal Open Market Committee (FOMC) meeting on interest rate outlook.
Market Impact
According to IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan, the latest US President Donald Trump's proposed 10 per cent to 12.5 per cent forced labour tariffs would influence market sentiment, as investors assess their impact on global trade, supply chains, and export-oriented economies.
The FBM KLCI, the key index of Bursa Malaysia, fell 30.43 points to 1,701.02 from 1,731.45 a week earlier on a Friday-to-Friday basis. Despite the decline, Mohd Sedek Jantan believes that as long as the FBM KLCI remains above the 1,695-1,700 territory, the broader uptrend remains intact. However, near-term gains are likely to remain measured as investors await clarity from key economic events and geopolitical situations.
The 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 other indices on the Bursa Malaysia also experienced mixed movements. The FBM Mid 70 Index expanded 115.91 points to 17,890.83, while the FBM ACE Index added 47.72 points to 4,926.87. On the other hand, the FBM Emas Index slipped 129.55 points to 12,589.54, the FBMT 100 Index shrank 145.60 points to 12,411.96, and the FBM Emas Shariah Index slid 38.22 points to 12,444.25.
By sector, the Plantation Index tumbled 182.79 points to 9,300.98, while the Energy Index inched up 7.55 points to 773.83. The Financial Services Index slumped 478.25 points to 20,057.11, and the Industrial Products and Services Index added 1.13 points to 187.86.
Weekly turnover on Bursa Malaysia decreased to 16.43 billion units worth RM12.09 billion from 17.82 billion units worth RM13.68 billion a week earlier. The Main Market volume narrowed to 9.01 billion units valued at RM10.72 billion against 9.22 billion units valued at RM12.10 billion previously. Warrants turnover dwindled to 4.94 billion units worth RM621.21 million versus 5.73 billion units worth RM711.62 million last week.
The ACE Market volume trimmed to 2.44 billion units valued at RM741.42 million compared with 2.86 billion units valued at RM862.68 million in the previous week.
The decline in trading activity on Bursa Malaysia reflects the cautious sentiment among investors, who are waiting for clearer signals from the FOMC meeting and the developments in the Middle East. The proposed forced labour tariffs by the US President Donald Trump have added to the uncertainty, and investors are seeking safer havens in defensive sectors.
According to Mohd Sedek Jantan, the shift in sector leadership is a natural response to the increased market volatility, as investors seek to minimize their risks and maximize their returns.
The impact of the FOMC meeting on Bursa Malaysia will depend on the outcome of the interest rate decision. On the other hand, if the interest rates are kept unchanged or increased, it could lead to a decrease in liquidity and a decline in the stock market. The developments in the Middle East will also continue to be closely monitored, as they have a significant impact on crude oil prices and global trade.
In the regional context, the performance of Bursa Malaysia is closely linked to the other stock markets in Asia. The cautious sentiment among investors is reflected in the decline in trading activity on other stock markets in the region. However, the long-term outlook for the region remains positive, driven by the growth in domestic demand and the increasing integration of the regional economies.
According to Mohd Sedek Jantan, the key to navigating the current market uncertainty is to remain focused on the fundamentals and to be prepared to adapt to changing market conditions.
Looking ahead, the performance of Bursa Malaysia will depend on the outcome of the FOMC meeting and the developments in the Middle East. Investors will continue to monitor the news and adjust their strategies accordingly. As Mohd Sedek Jantan noted, the broader uptrend remains intact, and the key is to remain cautious and to be prepared for any eventuality.
With the increasing uncertainty in the global economy, it is essential for investors to stay informed and to be prepared to adapt to changing market conditions. The upcoming week is expected to be, and investors will be closely watching the developments in the US and the Middle East for cues on the direction of the market.
Related: US Federal Reserve · Mohd Sedek Jantan · Bursa Malaysia