FBM KLCI gains momentum to close at 1,618 points

KUALA LUMPUR: Bursa Malaysia continued its upward momentum to end higher for the second consecutive day yesterday as gains were largely supported by buying interest in selected banking, utilities, and plantation heavyweights.

At 5pm, the FBM KLCI rose 3.96 points to 1,618.38 from Tuesday’s close of 1,614.42.

The key index opened 0.71 of-a-point easier at 1,613.71 and moved between 1,613.65 and 1,620.83 throughout the day.

On the broader market, gainers led decliners 569 to 549, with 518 counters unchanged, 784 untraded and six suspended.

Turnover increased to 4.76 billion units worth RM3.71bil from 4.65 billion units worth RM3.84bil on Tuesday.

Apex Securities Bhd head of research Kenneth Leong told BK that the FBM KLCI extended its gains, driven by modest dovish remarks from the US Federal Reserve (Fed) chairman Jerome Powell on the interest rate direction.

“Technically, the FBM KLCI has formed another bullish candle as the key index retained its position above 1,600.

“We maintain our upward bias projection for the key index as it looks to re-test the immediate resistance located at 1,630, while the downside support remains pegged at 1,580,” he said.

Investors will be keeping a close tab on Malaysia’s retail sales data as well as Bank Negara’s interest rate decision today.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the key regional indices ended the day somewhat mixed as the market’s attention remained on the timing of the Fed’s potential interest rate cuts.

Meanwhile, Japan’s Nikkei 225 rose 0.61% to 41,831.99, South Korea’s Kospi increased 0.02% to 2,867.99, and Singapore’s Straits Times Index firmed 0.99% to 3,459.93.

Hong Kong’s Hang Seng Index eased 0.29% to 17,471.67 and Shanghai SSE Composite Index fell 0.68% to 2,939.36.

Thong said investors are focused on US consumer inflation figures today, hoping for further proof that price growth is easing, which would likely strengthen the Fed’s resolve to reduce rates.

“As for the local bourse, the benchmark index continues its upward trajectory backed by a consistent influx of foreign buying support. We believe the present momentum will draw more investors, especially retail investors, into the market.

“The FBM KLCI is anticipated to trend within the 1,610 to 1,630 range for the rest of the week,” he added.

Bursa Malaysia heavyweights Malayan Banking Bhd dropped four sen to RM10.02 and Tenaga Nasional Bhd fell two sen to RM14.40.

IHH Healthcare Bhd was flat at RM6.30, while Public Bank Bhd increased three sen to RM4.14 and CIMB Group Holdings Bhd climbed 12 sen to RM7.09.

As for the most active counters, Dataprep Holdings Bhd perked up 3.5 sen to 24.5 sen, WCT Holdings Bhd bagged eight sen to RM1.05 and and Cabnet Holdings Bhd advanced 11 sen to 70 sen, while Hubline Bhd was half-a-sen lower at 7.5 sen.