FBM KLCI Seen Trading Cautiously Ahead Of Fed Decision Amid Tariff Woes

KUALA LUMPUR, July 27, 2026 — Bursa Malaysia is expected to trade cautiously this week as investors await the outcome of the US Federal Reserve’s policy meeting while weighing the impact of new US tariff measures, geopolitical tensions and upcoming earnings from major technology companies.

The benchmark FBM KLCI ended Friday down 13.49 points, or 0.79%, at 1,701.02, mirroring a broad regional sell-off triggered by concerns over fresh US tariffs and their potential impact on global trade. Market breadth remained weak, with 714 decliners outpacing 348 gainers.

Among sectoral indices, Plantation, Transportation & Logistics and REIT posted gains, while Telecommunications & Media, Financial Services and Construction recorded the steepest losses.

Tariff Woes

Market attention this week will centre on the US Federal Open Market Committee (FOMC) meeting on July 29. While the Federal Reserve is widely expected to leave interest rates unchanged for a fifth consecutive meeting, markets have begun pricing in a small possibility of a surprise 25-basis-point hike following renewed inflation concerns linked to higher energy prices.

Investor sentiment will also be shaped by the implementation of new US tariffs of between 10% and 12.5% on 60 trading partners, ongoing developments in the Middle East and movements in crude oil prices.

On Wall Street, the Dow Jones Industrial Average and S&P 500 closed higher on Friday, while the Nasdaq Composite fell as weakness in semiconductor stocks weighed on technology shares. European markets ended broadly stronger, although most Asian markets closed lower, with South Korea’s KOSPI suffering the biggest decline.

Analysts continue to favour energy stocks as geopolitical uncertainties could keep crude oil prices supported despite recent volatility. Plantation counters may also benefit if stronger energy prices underpin crude palm oil prices, while technology stocks are expected to remain volatile ahead of earnings releases from Microsoft, Meta, Apple and Amazon, which are expected to provide fresh insights into artificial intelligence spending and broader market prospects.

#businessnews

kazimahmood

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