Bursa Malaysia braces for cautious week as FOMC and Middle East drive sentiment
The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 30.43 points to 1,701.02 in the week ended Friday, as investors turned cautious ahead of the US Federal Open Market Committee (FOMC) meeting and geopolitical risks in West…
Source: The Star · Bernama · July 29, 2026 at 7:15 PM · AI-assisted report
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BURSA MALAYSIA, 30 JULY 2026 —
The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 30.43 points to 1,701.02 in the week ended Friday, as investors turned cautious ahead of the US Federal Open Market Committee (FOMC) meeting and geopolitical risks in West Asia.
Market Impact
According to Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, the bourse is likely to remain defensive until there is clarity on US interest-rate policy and the impact of proposed US tariffs on forced labour. He expects sector leadership to shift from growth to defensive plays such as healthcare, commodities and oil & gas, citing earnings resilience amid higher volatility.
“As long as the FBM KLCI remains above the 1,695-1,700 territory, we believe the broader uptrend remains intact, although near-term gains are likely to remain measured as investors await clarity from key economic events and geopolitical situation,” he told Bernama.
On the index board, the FBM Mid 70 Index rose 115.91 points to 17,890.83, while the FBM ACE Index added 47.72 points to 4,926.87. The FBM Emas Index lost 129.55 points to 12,589.54, the FBMT 100 Index fell 145.60 points to 12,411.96, and the FBM Emas Shariah Index declined 38.22 points to 12,444.25.
By sector, the Plantation Index dropped 182.79 points to 9,300.98, the Energy Index gained 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 edged up 1.13 points to 187.86.
Weekly turnover fell to 16.43 billion units, worth RM12.09 billion, from 17.82 billion units worth RM13.68 billion the prior week. Main Market volume shrank to 9.01 billion units valued at RM10.72 billion, compared with 9.22 billion units worth RM12.10 billion previously.
Warrants turnover dropped to 4.94 billion units worth RM621.21 million, and the ACE Market saw volume of 2.44 billion units worth RM741.42 million, both lower than the prior week’s 5.73 billion units at RM711.62 million and 2.86 billion units at RM862.68 million respectively.
Jantan said the proposed US tariffs of 10-12.5 per cent on goods linked to forced labour would weigh on market sentiment as investors reassess global trade flows and supply-chain risks for export-reliant economies.
He added that defensive sectors are likely to attract flows until the FOMC meeting and Middle East developments clarify, but stressed that a sustained break below 1,695-1,700 would signal a deeper pullback.
Related: US Federal Reserve · Mohd Sedek Jantan · Bursa Malaysia