KUALA LUMPUR: Bursa Malaysia opened on a positive note in early trade, with notable gains in Tenaga Nasional, Maybank, and YTL Power, as market sentiment remained optimistic.
The FBM KLCI rose 2.8 points, or 0.17% to 1,671.62 at 9.12 am. The index opened up 1.09 points at 1,669.91 earlier.
Inter-Pacific Research continues to view the Malaysian equity market's undertone as a firm, with upsides likely to prevail for the time being, buoyed by the positive impact of a U.S. interest rate cut, which is widely regarded as beneficial for the country's economy in the medium term.
However, it noted that the upsides could still be modest ahead as much of the positives are already reflected in the FBM KLCI’s strong year-to-date gains with valuations also well within its historical forward averages.
At the same time, domestic catalysts remain limited, which may further constrain upside potential in the near term.
“We do not rule out bouts of profit-taking at the start of the week, despite conditions still firm, and this could also mean the 1,670 level will be the immediate hurdle, followed by the 1,675 level.
“On the downside, the immediate support is at the 1,665 level, followed by the 1,660 level,” Inter-Pacific said.
Meanwhile, Apex Securities expects a pullback in the local bourse during the interim as investors lock in recent gains.
Likewise, it said the lower liners may also brace for some weakness ahead, after enjoying a decent run over recent times.
Investors will be monitoring Malaysia’s inflation data to be released today.
“We reckon some weakness to prevail over the technology sector, mirroring the weakness on Nasdaq overnight. Also, gold-related stocks have turned appealing with gold price inching above US$2,600 per ounce, stem from expectations of further US interest rate cuts and safe-haven inflows from rising tensions in the Middle East,” it said.
Among the gainers on Bursa Malaysia, F&N jumped 56 sen to RM30.84, Dutch Lady
gained 32 sen to RM31.32, United Plantations rose 18 sen to RM26.30 and Affin added 18 sen to RM3.05.
Hong Leong Financial Group and Hong Leong Bank lost 16 sen each to RM19.26 and RM20.92 respectively.
Malaysian Pacific Industries fell 10 sen to RM27.50, Bat declined 10 sen to RM7.90 and PMB Technology gave up nine sen to RM2.01.
Iskandar Waterfront City, the most actively traded counter rose five sen to 67 sen with 20.55 million shares done.
