FBM KLCI rises as US inflation data meets expectations

KUALA LUMPUR: Bursa Malaysia’s benchmark FBM KLCI gapped up at Thursday’s open as the market rebounded after a weak performance in the first half of the week.

At the start of trading, the main index gapped up 3.39 points to 1,614.89, meeting the 14-day simple moving average as it attempted to embark on a retracement.

However, investors’ efforts appear to remain capped by the moving average, pending the release of the country’s third-quarter gross domestic product tomorrow, as well as more corporate results over the coming weeks.

Given the strength of the US dollar, Malacca Securities Research reiterated its positive view on technology and glove stocks.

“We also favour stocks within the Industrial Engineering industry and AI-driven sectors, as KGB experienced a breakout yesterday due to its strong earnings and its positive prospects.

“Also, selected construction, property, and building materials stocks are expected to post stronger earnings, supported by ongoing data centre investments,” it said in a note.

On the blue-chip index, leading gainers included CIMB up nine sen to RM8.29, PETRONAS Chemicals rising six sen to RM4.61 and IHH adding four sen to RM7.21.

Life Water, which made its debut on the Main Market yesterday to a strong reception, continued its rally. It climbed five sen to 99 sen after 19.42 million shares changed hands, making it the most actively traded counter.

Other heavily traded shares included MPire up 0.5 sen to 21.5 sen after 11.35 million shares changed hands, and Johor Plantations adding four sen to RM1.29 after 5.1 million shares done.

Overnight, Wall Street stocks ended mixed as US inflation data came in within expectations, affirming the likelihood of another reduction in the lending rate in December.

CME FedWatch Tool currently projects a 82.8% probability of a 25 basis points rate cut at the central bank’s next meeting.

Among the main indices, the Dow Jones Industrial Average rose 0.11% to 43,958.19, the S&P 500 gained 0.02% to 5,985.38 and the Nasdaq Composite lost 0.26% to 19,230.74.