KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Bursa Malaysia Bhd (KL:BURSA) could be heading for a stronger quarter ahead as market activities show signs of recovery — though analysts warn that the stock’s upside remains limited after recent gains.
Momentum Builds as Trading Activity Picks Up
Trading activity improved notably in the third quarter, with average daily volumes jumping 13% compared to the previous quarter. Analysts believe investors have now adjusted to the market impact of US President Donald Trump’s policies, and momentum continued to build in October.
“We expect trading activities to pick up further as investor sentiment improves on the back of potential US rate cuts and lower trade policy risks,” said MBSB Research.“However, much of the optimism may already be priced in,” it added.
Stock Rally Faces Resistance
Despite the positive momentum, Bursa’s stock dipped 3.4% on Friday, or 28 sen, after rallying more than 16% from its April lows. Analysts caution that valuations may now be stretched.
According to Bloomberg data, there are currently two ‘sell’, 10 ‘hold’, and six ‘buy’ calls on the counter, with an average target price of RM8.41 — implying a modest 4% potential return over the next 12 months.
TA Securities Turns Neutral
TA Securities recently upgraded Bursa to ‘hold’ from ‘sell’, but noted that near-term challenges persist. The firm pointed out that softer trading velocity and higher expenses from ongoing system enhancements could continue to weigh on earnings.
Trading velocity — a key indicator of market activity — was 10 percentage points lower at 32% in the first nine months of 2025 compared to the same period last year.
Earnings Target Trimmed
Reflecting a more cautious outlook, Bursa has revised down its full-year profit before tax forecast to RM314 million–RM347 million, from the earlier RM369 million–RM408 million range. The exchange also cut its new listings market capitalisation target to RM25.2 billion from RM40.2 billion.
Investor Takeaway
While the short-term outlook for trading volumes looks brighter, analysts remain cautious about the limited upside for Bursa’s stock. The exchange may benefit from improving market sentiment — but with valuations already catching up, investors may want to stay selective or wait for pullbacks before re-entering.
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