FBM KLCI rises on Wall Street’s lead

KUALA LUMPUR: The FBM KLCI edged up in early trade on Friday, tracking overnight gains on Wall Street.

The benchmark index rose 1.59 points, or 0.11% to 1,457.17 at 9.19am. It opened 1.18 points higher at 1,456.76.

Overnight, the Dow Jones Industrial Average rose 0.87% to 37,404.35, the S&P 500 gained 1.03% to 4,746.75 and the Nasdaq Composite added 1.26% at 14,963.87.

“Going forward, we expect some nibbling to take place, mirroring from the recovery on Wall Street overnight on the back of resumption in year-end window dressing activities,” Apex Securities said.

The lower liners, however, may consolidates with investors takes a break ahead of the extended weekend festive holiday with trading activities likely to simmer.

“Economic wise, Malaysia inflation rate alongside with the US consumer sentiment data will be in focus.

“We expect the technology sector to mirror the gains on Nasdaq overnight. Healthcare sector may also see improved trading interest following the resurgence of Covid-19 cases,” Apex said.

On Bursa Malaysia, Rapid jumped 80 sen to RM28.20, Nestle added 50 sen to RM120, Heineken rose 32 sen to RM24.10 and Dutch Lady gained 12 sen to RM22.60.

Among the decliners, Kuala Lumpur Kepong slid 10 sen to RM21.82, PETRONAS Dagangan fell 10 sen to RM21.86, Zhulian declined seven sen to RM1.53 and MBM Resources lost five sen to RM4.13.

Following the positive rebound on Wall Street, buying interest may return to the local exchange, according to Malacca Securities.

“Traders could relook into the technology sector after the strong rebound on Wall Street, as we noticed overall earnings have been stabilising at least for the past two quarters.

“Meanwhile, we favour the infrastructure theme next year coupled with the Johor-region focus theme. Thus, we believe it should benefit the construction, property, building material and utilities sectors,” it said.

On the commodity markets, Malacca Securities said Brent oil prices steadied around the US$80 a barrel as record US production and rising inventories offsetting the tensions in the Middle East, limiting the upside at this juncture.