KUALA LUMPUR (July 27): Bursa Malaysia will be bouncing up and down without a sustained directional trend in the coming months, according to an analyst.

Apex Securities likens today's markets to a kangaroo, noting that unlike past geopolitical events that centred on a single catalyst, investors are now grappling with evolving Middle East tensions, shipping disruptions, Trump tariffs, uncertain US monetary policy expectations and slowing Chinese demand.

“We believe investors should prepare for an environment where sharp market swings become increasingly common,” the research house said in a note.

Both the US and Iran have halted their strikes after nearly two weeks of intense bombing. Oil prices tumbled and stock markets in Asia recovered following news of the pause.

Malaysia shares are also set to regain Friday’s losses with the benchmark FBM KLCI rising nearly 0.8% on Monday.

While rapid swings in sentiment create opportunities, Apex Securities is urging investors to remain selective and only buy fundamentally strong companies while maintaining sufficient liquidity to navigate elevated volatility rather than attempting to trade every geopolitical headline.  

Geopolitical developments do not “materially alter Malaysia's underlying economic fundamentals", the house said and maintained its KLCI year-end target of 1,787 points.

The technology upcycle continues to underpin demand for Malaysia's electronics and electrical exports, “which we believe should remain largely insulated from fluctuations” in crude oil prices, Apex Securities noted.