Stock market Bursa concludes trading at its peak for the day, maintaining its position above the 1,600 level
Malaysian Stock Market Climbs as US Fed Anticipated to Cut Interest Rates
The Malaysian stock market experienced a positive trend today, with the benchmark index, FBM KLCI, rising 11.57 points to 1,611.70. This upward movement was underpinned by a widely anticipated US Federal Reserve (Fed) move to trim interest rates by 25 basis points later tonight.
According to Kenneth Leong, the head of research at Berjaya Research Sdn Bhd, this potential reduction in interest rates could improve risk potential and attract potential foreign capital expenditures to Malaysia. He further explained that this positive bias on the local bourse is expected to sustain.
In the Main Market, the consumer products and services sector saw 26.52 million shares traded, while the volume increased to 1.92 billion units. The top gainer in this sector was Petronas Dagangan, soaring RM1.24 to RM22.98. Other notable gainers included Public Bank, which gained 5 sen to RM4.30, and Telekom Malaysia's competitor, IHH, which jumped 11 sen to RM7.36.
However, Telekom Malaysia was the top loser, falling 60 sen to RM7.00. Maybank and Tenaga also saw a decline, with Maybank losing 7 sen to RM9.94 and Tenaga dropping 6 sen to RM13.44.
On the broader market, gainers led decliners 739 to 409. The FBM Emas Index surged 81.27 points, and the FBM Emas Shariah Index garnered 46.11 points. The FBM 70 Index advanced 75.52 points, and the FBMT 100 Index climbed 76.47 points.
The ACE Market volume fell to 343.55 million, with VS Industry and Bumi Armada being the only gainers, each increasing by 1 sen. Warrants turnover increased to 860.43 million units, and the turnover widened to 3.13 billion units worth RM3.16 billion.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng stated that the FTSE Bursa Malaysia KLCI (FBM KLCI) ended higher with broad-based buying. He further noted that the key regional indices ended mostly higher, with strong buying in China and Hong Kong on tech stocks due to technology sector strength and positive sentiment around US artificial intelligence developments.
The key regional indices' performance, along with the potential US Fed interest rate cut, suggests a more accommodative monetary stance globally. This could improve global liquidity conditions, bolster risk appetite, and potentially channel renewed foreign fund inflows into emerging equities, with Malaysia set to benefit from its relatively attractive valuations and stable earnings outlook.
Technically, the FBM KLCI has formed a bullish trend and might head towards the near-term resistance located at 1,620 points, while the support level is pegged at 1,580 points. This healthier base formation suggests the latest breakout attempt has greater durability, potentially setting the stage for a more sustained uptrend if buying interest persists.
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