FBM KLCI catches up to global bullish sentiment

KUALA LUMPUR: Bursa Malaysia reopened after the Chinese New year weekend with renewed bullish sentiment as global markets have turned optimistic on positive US corporate earnings and expectations of normalising inflation rates.

Ahead of the release of US inflation data later tonight, the Dow Jones continued to push higher although there was some slight profit-taking in the S&P500 and Nasdaq.

All three major US indices have come off five straight weeks of gains, fuelled by expectations that the US Federal Reserve is moving into a rate-cutting cycle.

Apex Securities Research said the improved market sentiment present further upsides to both blue chips and lower liners, but advocates caution with stocks that have rallied rapidly into overbought zones.

In a separate report, Malacca Securities Research said it expects buying support to return after the long break within the construction, property and utilities sector.

It said this was supported by the potential revival of the KL-SGR HSR mega project and the data centre investment in the region over the near term.

“Also, the market will be focusing on earnings where Consumer may provide upside in earnings potential amid cost normalisation, while the Energy sector may be lifted by healthy Brent oil price,” said the research firm.

At the open, the benchmark FBM KLCI was a marginal 0.35 points higher at 1,513.63, but took off over four points within the first minute of trading.

Genting rose six sen to RM4.96 and Genting Malaysia gained four sen to RM2.88.

IHH gained seven sen to RM6.19 while bank counters also rose including CIMB up three sen to RM6.22, Maybank climbing four sen to MR9.30, Public Bank adding two sen to RM4.37 and RHB rising four sen to RM5.62.

Top actives included KNM unchanged at nine sen, TWL up 0.5 sen to four sen and Reneuco flat at 5.5 sen.