FBM KLCI bounces higher, but downward bias remains

KUALA LUMPUR: The FBM KLCI bounced at the start of Friday trade after five consecutive days of decline, although the global equities landscape remained volatile.

The FBM KLCI opened 4.62 points higher to 1,608.88, erasing some of the losses seen over recent days but on track to ending the week lower than last Friday’s close.

As Corporate Malaysia enters the final day of the first-quarter results period, domestic stocks are expected to remain on a downward bias given the rising bond yields triggered by hawkish sentiments over US interest rates, said Apex Securities Research.

“We expect the downward bias in the local bourse to persists on the final trading day of week, mirroring the weakness globally due to the elevated bond yields.

“Investors will continue to monitor over the on-going flurry of corporate earnings releases for today,” the research firm said in a note.

There will be some added volatility in global markets as a key US inflation report, the personal consumption expenditures price index, is due out later tonight. The Federal Reserve’s preferred gauge of inflation, the index is expected to show the pace of inflation remains higher than the central bank’s 2% target.

Meanwhile, Malacca Securities Research said data centres are a new key trading theme following the announcement that Google will invest US$2bil in data centre and cloud services in Malaysia.

“We believe it may benefit stocks within the Technology sector related to hard disk drive, electronic manufacturing services and cybersecurity.

“Other sectors that will benefit under this theme include construction, property, building materials and utilities,” it said in a note.

Companies that reported their latest quarterly results yesterday included Genting, up six sen to RM4.91, Press Metal jumping 21 sen to RM5.80 and Hong Leong Bank, rising 12 sen to RM19.38.

Meanwhile, Mah Sing dropped 12 sen to RM1.59, Genting Malaysia shaved nine sen to RM2.71 and PPB fell eight sen to RM14.66.

Top actives included Datasonic up 0.5 sen to 52 sen, Harvest Miracle flat at 10.5 sen and RGB rising 2.5 sen to 44 sen.