FBM KLCI opens higher after long weekend break

KUALA LUMPUR: While the FBM KLCI started Tuesday on a positive performance following Wall Street overnight rally, analysts are offering contrasting opinions over how the domestic market will perform moving forward.

According to Apex Securities Research, the consolidation on the domestic market is expected to pick up pace following dovish remarks from the US Federal Reserve on interest rate cuts

The local benchmark index ended lower last Friday amid a broad-based pullback, which is expected to continue as the positive momentum continues to fade, it said.

“Economy-wise, investors will be keeping a close tab on US industrial production data, manufacturing production and retail sales data to gauge any weaknesses within the economy,” said the research firm in a note.

Malacca Securities Research, however, anticipates buying support to persist on the local front given the positive sentiment in the US stock markets.

“With Apple’s buying interest reignited with the incorporation of AI into its products, there might be spillover of buying support towards stocks on the local front within the technology sector.

“Also, we like the ongoing AI and Data Center catalysts to boost the appetite for the HDD, cloud, cybersecurity segments,” it said in its outlook.

After a long weekend, the FBM KLCI opened 2.32 points higher at 1,609.39 as investors started the week on some bargain-hunting.

Blue chips taking the lead included YTL Power up nine sen to RM5.37, Press Metal rising four sen to RM5.84, Tenaga Nasional adding 10 sen to RM14.18 and Telekom climbing 14 sen to RM6.66.

Other active stocks included Heineken adding 18 sen to RM23.38, Petron Malaysia rising 12 sen to RM4.98, Notion Vtec gaining 10 sen to RM1.91 and KESM climbing nine sen to RM7.50.

Hibiscus Petroleum, which announced its acquisition of the entire stake in TotalEnergies EP (Brunei) for US$259.4mil, rose nine sen to RM2.52.

Top actives included DFX up one sen to 21 sen, K1 adding 2.5 sen to 29.5 sen and Harvest Miracle gaining one sen to 10.5 sen.