Bursa Malaysia Opens Higher On Improved Sentiment


Bursa: Bursa Malaysia rebounded to open higher today, buoyed by improved sentiments following Wall Street’s better performance overnight. At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) improved 11.20 points or 0.71 per cent to 1,573.32 from Wednesday’s close of 1,562.12.



According to BERNAMA News Agency, the benchmark index opened 10.49 points higher at 1,572.61. On the broader market, gainers led decliners 328 to 83, while 226 counters were unchanged, 1,738 remained untraded, and nine were suspended. Turnover stood at 316.43 million units valued at RM151.54 million.



UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the improvement in the local market as investors reacted positively to the easing of geopolitical tensions in the Middle East. This followed the confirmation of the Israel-Hamas ceasefire and hostage deal in Gaza, which is set to take effect on Sunday, January 19.



Additionally, market concerns eased with cooler-than-expected United States core consumer price index data, while the Bank of Korea maintained its interest rates. These developments are anticipated to spur increased bargain-hunting in the market, Mohd Sedek stated.



Meanwhile, Rakuten Trade Sdn Bhd vice-president of Equity Research, Thong Pak Leng, mentioned Wall Street’s rebound after the US CPI data suggested that a US interest rate hike may be unlikely for now. As a result, the US Treasury 10-year yield eased below the 4.7 per cent level to 4.655 per cent.



Thong further commented that the FBM KLCI continued to experience pressure from foreign selling, leading to a close above the 1,560 mark yesterday. He speculated that foreign funds might be off-loading their positions ahead of former US President Trump’s inauguration, with plans to assess subsequent tariff policies.



As January progresses, the index has already decreased by five per cent. However, Thong believes this situation offers a strategic opportunity to accumulate shares, expecting the index to hover within the 1,565-1,580 range today.



Among the heavyweights, Maybank gained two sen to RM10.16, Public Bank increased by five sen to RM4.45, CIMB rose by 11 sen to RM7.96, and Tenaga jumped 18 sen to RM13.68, while IHH remained flat at RM7.10.



Among the active stocks, newly listed CBH Engineering Holding Bhd added 5.5 sen to 33.5 sen, while Velocity Capital, Aimflex, and Mestron each increased by half-a-sen to 8.5 sen, 15 sen, and 26.5 sen respectively.



On the broader index, the FBM Emas Index gained 91.44 points to 12,043.16, the FBM Emas Shariah Index rose 89.22 points to 11,918.26, and the FBMT 100 Index climbed 90.20 points to 11,732.65. The FBM 70 Index improved 162.87 points to 17,955.43, while the FBM ACE Index increased 37.79 points to 5,188.99.



Sector-wise, the Energy Index expanded by 7.84 points to 829.63, the Financial Services Index widened by 123.68 points to 18,790.60, the Industrial Products and Services Index edged up 0.53 of-a-point to 166.58, and the Plantation Index gained 21.53 points to 7,391.54.