“We expect the FBM KLCI to continue trading sideways within the 1,650 to 1,670 range until more clarity on the United States rate cut is available,” Rakuten Trade's Thong said.
KUALA LUMPUR: Bursa Malaysia ended its six-day losing streak yesterday, driven by bargain hunters and boosted by positive sentiment across major Asian markets following strong Chinese economic data and gains on Wall Street.
At 5pm, the FBM KLCI rose 8.86 points, or 0.54%, to 1,660.35, up from Monday’s close of 1,651.49.
The index opened 2.31 points lower at 1,653.80 and fluctuated between 1,649.53 and 1,661.09 throughout the day.
Market breadth was mixed, with 501 losers outpacing 479 gainers, while 520 counters were unchanged, 955 untraded and six suspended.
Turnover eased to 3.05 billion units worth RM3.78bil, compared with Monday’s 3.38 billion units valued at RM3.85bil.
Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, said the positive economic data from China and gains from Wall Street were significant, with China’s exports rising 8.7% and imports increasing by 0.5% in August, surpassing forecasts of 6.5% and 2%, respectively.
“Despite the improved market conditions, we remain cautiously optimistic about the local market due to reduced trading volumes and shifting investor expectations.
“We expect the FBM KLCI to continue trading sideways within the 1,650 to 1,670 range until more clarity on the United States rate cut is available,” he told Bernama.
Meanwhile, UOB Kay Hian Wealth Advisors’ head of investment research, Mohd Sedek Jantan said that Bursa’s performance mirrored Wall Street’s notable rebound, driven by bargain hunting ahead of key inflation data.
“However, the Bursa Small-Cap Index continued to decline for another session. With the recovery in US technology stocks, we anticipate that investors to seek opportunities in oversold local technology stocks,” he said.
The FBM KLCI’s gainers yesterday were led by telecommunications, healthcare and banking stocks.
