KUALA LUMPUR: Bursa Malaysia is expected to trade with caution within the 1,630-1,650 range next week with the tabling of Budget 2025 on Oct 18, said an analyst. 

Stephen Innes, managing partner at SPI Asset Management said attention would be squarely on the budget, which is expected to be well-received by the market.

"Hopes are high that it will include enough incentives to keep foreign direct investments (FDIs) flowing robustly into Malaysia, a boon for local equities," he said. 

He also believed that a budget that supports business growth and international interest could set the stage for a bullish run on Bursa Malaysia, especially if key sectors see favourable allocations.

"That said, it's not all smooth sailing. A trio of potential tail risks could dampen the optimism.

"First, if US economic data stays stronger than expected, the market might begin pricing out future Federal Reserve rate cuts, sparking a reversal in sentiment," he pointed out. 

Secondly, the ripple effect could be felt across the region if China's stimulus measures disappoint or miss the mark.

"Lastly, if Malaysia's Budget 2025 falls flat or reveals uninspiring initiatives, local stocks could take a hit," he said.

The local bourse traded mixed during the week just ended amid a mixed performance in regional bourses and higher-than-expected US consumer price index in September. 

On a Friday-to-Friday basis, the FBM KLCI gained 3.58 points to 1,633.55 from 1,629.97 in the previous week.

Across Bursa Malaysia's index board, the FBM Emas Index added 76.26 points to 12,282.75, the FBM Emas Shariah Index climbed 96.14 points to 12,210.35, the FBMT 100 Index was better 78.28 points to 11,978.85, the FBM 70 Index soared 325.99 points to 17,594.39, and the FBM ACE Index rose 39.25 points to 5,148.77.

Sectorwise, the Industrial Products and Services Index eased 0.03 of-a-point to 176.07, the Energy Index was 10.58 points lower at 882.10, the Financial Services Index slid 12.40 points to 19,178.28, while the Plantation Index firmed 15.63 points to 7,201.41.

Turnover shrank to 14.17 billion units worth RM12.87 billion versus 16.87 billion units worth RM13.54 billion the previous week.

The Main Market's volume decreased to 8.01 billion shares worth RM11.67 billion from 8.30 billion shares worth RM12.11 billion last week.

Warrant turnover narrowed to 3.88 billion units worth RM529.21 million from 6.46 billion units worth RM931.70 million the week before.

The ACE Market's volume accumulated to 2.27 billion shares worth RM656.80 million from 2.10 billion shares worth RM491.78 million previously.