FBM KLCI takes off on the heels of record-breaking Wall Street performances

KUALA LUMPUR: Spurred by record-breaking performances in the S&P 500 and Dow Jones overnight, the FBM KLCI opened higher in early trade on Tuesday.

The market bellwether rose 1.65 points, or 0.1% to 1,638.19 at 9.13 am. It opened up 2.02 points at 1,638.56.

The S&P 500 closed at a new record high, while the Dow Jones surpassed 43,000 for the first time overnight.

The Dow Jones Industrial Average rose 201.36 points, or 0.47%, to 43,065.22. The S&P 500 gained 0.77%, to 5,859.85 points, while the Nasdaq Composite climbed 0.87% to 18,502.69.

Inter-Pacific Research said there is no change to Bursa Malaysia’s immediate outlook with the drifting trend to persist over the near term.

“As it is, local market conditions have largely decoupled from Wall Street’s performance of late, mainly due to lack of local leads and mostly fair valuations that is leaving few buying impetuses for market players to follow.

“At the same time, market players are waiting for the unveiling of Budget 2025 at the end of the week for fresh leads, resulting in the lower market following, particularly from foreign funds that have been net sellers of late,” it said.

“Under the prevailing environment, the key index looks to linger around the 1,630 and 1,640 levels for longer with the ensuing support and resistance levels pegged at 1,625 and 1,645 points respectively,” Inter-Pacific said.

Meanwhile, Apex Securities expects a potential recovery at the FBM KLCI today, taking cues from positive developments on Wall Street on Monday, as we approach the tabling of Budget 2025.

The research house added that the lower liners may remain in consolidation mode amid the absence of fresh leads, with trading activities simmering.

It added that investors will continue to keep an eye on US performance this week, with the release of key economic data serving as a core indicator of interest rate movements determined by the Fed.

The Middle East tension continues to escalate, keeping traders on edge. The ongoing corporate earnings releases in the US will be in focus.

“We expect the consumer sector to be buoyed by the potential deferment of RON95 subsidy rationalisation,” Apex said.

Among the gainers on Bursa Malaysia, Dutch Lady jumped 62 sen to RM32, Bintulu Port gained 35 sen to RM6.50, F&N added 18 sen to RM31.18 and Hong Leong Bank rose 18 sen to RM21.28.

On the other hand, Carlsberg slid 12 sen to RM19.352, Nestle fell 10 sen to RM102.40, Hong Leong Industries declined eight sen and Hengyuan gave up eight sen to RM2.54.

ACE Market debutant, Northeast Group added 3.5 sen, or 7% to 53.5 sen with 110 million shares done.

Northeast is principally involved in the manufacturing of precision engineering components with engineering and machining capabilities catering to the photonics, electrical and electronics, semiconductor, telecommunication and optoelectronics industries.