Kuala Lumpur: Bursa Malaysia closed higher for the second day in a row, driven by ongoing bargain hunting after last week's sell-off, aligning with the positive performance of regional markets, as stated by an analyst. At the close of the trading day, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased by 0.67 percent, or 10.15 points, reaching 1,518.12, up from Wednesday's close of 1,507.97.
According to BERNAMA News Agency, the benchmark index opened 2.73 points higher at 1,510.70, fluctuating between 1,509.25 and 1,520.34 throughout the session. The broader market was upbeat with 641 gainers outnumbering 341 decliners. Meanwhile, 437 counters remained unchanged, 937 were untraded, and 20 were suspended. Turnover saw a slight improvement to 2.42 billion units valued at RM2.27 billion, compared to the previous day's 2.40 billion units worth RM2.03 billion.
Rakuten Trade Sdn Bhd's equity research vice-president, Thong Pak Leng, noted that key regional indices also ended higher, buoyed by strong buying in technology, electric vehicle, and real estate stocks. Global tech stocks found support as US Treasury yields fell, influenced by soft labor data that raised expectations of further rate cuts by the Federal Reserve.
Market participants are also closely observing ongoing trade tensions under US President Donald Trump and the potential for discussions with China's President Xi Jinping. Domestically, the benchmark index remains well-supported above the 1,500 level, indicating underlying market resilience. Despite global volatility, the fundamentals of local equities are considered solid, driven by attractive valuations and stable corporate earnings, Thong added.
UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, highlighted that the Organisation for Economic Co-operation and Development revised its US GDP growth forecast for 2025 downwards, from 2.2 percent to 1.6 percent. This adjustment in rate expectations provides a tailwind to regional equity markets, with Asian indices broadly outperforming.
Locally, gains in the consumer, utilities, and construction sectors led the FBM KLCI, sectors typically sensitive to interest rate dynamics. Conversely, banking counters faced pressure due to the yield curve repricing and potential margin compression if the Fed adopts a more dovish stance.
Although the rebound is promising, Mohd Sedek cautioned that calling it a sustained recovery would be premature. Markets still lack a decisive catalyst, and external risks, particularly the uncertain trajectory of US-China trade relations, continue to cloud the outlook. Trading volumes remained below trend, with 2.4 billion shares changing hands compared to the daily average of 3.0 billion, highlighting the market's cautious tone.
Among the heavyweights, YTL Corp surged 15 sen to RM2.03, YTL Power International rose 22 sen to RM3.51, Petronas Chemicals increased 12 sen to RM3.36, Press Metal added 15 sen to RM5.05, and Sime Darby rose 5.0 sen to RM1.75.
Active stocks saw movements with ACE Market debutant Signature Alliance Group advancing 8.0 sen to 70 sen, MYEG increasing by 3.0 sen to 93 sen, while NexG fell by half-a-sen to 37.5 sen. Tanco improved by 1.5 sen to RM1, and Gamuda added 8.0 sen to RM4.74.
On the index board, the FBM Emas Index increased by 79.76 points to 11,362.83, the FBMT 100 Index rose by 75.42 points to 11,128.36, and the FBM ACE Index climbed by 38.49 points to 4,518.14. The FBM Emas Shariah Index jumped by 99.09 points to 11,340.74, while the FBM 70 Index leapt 114.31 points to 16,283.31.
Sector-wise, the Financial Services Index fell by 18.27 points to 17,739.57, the Plantation Index gained 15.71 points to 7,219.38, the Energy Index added 6.15 points to 708.61, and the Industrial Products and Services Index edged up 2.02 points to 152.12. The Main Market volume slightly increased to 1.16 billion units valued at RM2.00 billion compared to Wednesday's 1.15 billion units worth RM1.83 billion.
Warrants turnover decreased to 898.22 million units worth RM114.39 million from 967.10 million units valued at RM118.58 million the previous day. The ACE Market volume expanded to 361.18 million shares worth RM153.86 million, up from 288.86 million shares valued at RM78.35 million previously.
Consumer products and services counters accounted for 140.75 million shares traded on the Main Market, industrial products and services (158.91 million), construction (122.71 million), technology (228.74 million), with no trades in SPAC, financial services (79.12 million), property (143.30 million), plantation (13.83 million), REITs (13.15 million), closed/fund (5,100), energy (61.45 million), healthcare (67.09 million), telecommunications and media (33.94 million), transportation and logistics (24.38 million), utilities (79.29 million), and business trusts (10,100).