KUALA LUMPUR: The FBM KLCI rose in early trade to close above the 1,500-point level amid persistent buying interest from foreign funds into heavyweights.
At 9.19am, the market bellwether gained 4.86 points, or 0.32% to 1,500.56. The index opened 1.47 points higher at 1,497.17.
Dealers expect the positive market sentiment will continue to push the key index higher over the near term.
Overnight, the Dow Jones Industrial Average rose 0.58%, the S&P500 gained 1.41%, and the Nasdaq climbed 2.2% following a strong surge in U.S tech stocks.
Inter-Pacific Research said market sentiments are still firming up as Malaysian equities continue to buck the region’s insipid trend with the bargain hunting from foreign funds the main factor pushing up the equity prices.
However, the research house sees this level as a formidable level to clear as market conditions are becoming toppish even as there are few signs of consolidation as yet.
“Therefore, the key index could still test the level in the day ahead, but it could also prompt increased profit-taking activities that could slow further gains due to the already toppish market conditions.
“If the level fails to breach, the key index could consolidate to the supports at 1,487 and 1483 points respectively. Above the 1,500 level, the ensuing hurdle is at the 1,512 level,” it said.
Meanwhile, Apex Securities is closing monitoring the 1,500 resistance level following the strong uptrend. The robust recovery in Wall Street could potentially drive gains in our local market.
“The lower liners may continue to enjoy their extended gains amidst the robust liquidity and improved trading sentiment. Looking ahead, investors will be monitoring the US CPI on Thursday and US PPI on Friday.
“Meanwhile, gold prices retreated ahead of the US inflation data. Following the weaker oil prices, we advocate traders to stay away from oil and gas-related stocks today,” Apex said.
At Bursa Malaysia, Rapid rose 64 sen to RM25.46, Nestle added 60 sen to RM118.60, Malaysian Pacific Industries gained 56 sen to RM28.50 and Hong Leong Capital advanced 23 sen to RM4.73.
YTL Power succumbed to profit-taking, falling nine sen to RM3.35. Concrete Engineering Products lost nine sen to 98 sen, APB Resources
eased eight sen to RM2.38 and Malayan Cement declined seven sen to RM4.61.