KUALA LUMPUR: Bursa Malaysia opened higher on Tuesday, buoyed by Wall Street's strong overnight performance, reflecting positive market sentiment.
The FBM KLCI rose 4.96 points, or 0.3% to 1,670.26 at 9.25 am. The index opened up 1.95 points at 1,667.25 earlier.
Overnight, the Dow Jones Industrial Average rose 0.15% to 42,124.65, the S&P 500 rose 0.28% to 5,718.57 and the Nasdaq Composite rose 0.14% to 17,974.27.
Inter-Pacific Research said that despite yesterday’s pullback, the market’s undertone remains firm, supported by continued optimism from the Federal Reserve’s interest rate cut, which is expected to serve as a catalyst for equities to move higher.
It said the Fed’s move has given Malaysian equities another leg up on the increased prospects for demand driven gains in due course, albeit the benefits will take time to materialise.
“This could allow for the FBM KLCI to mount a quick rebound, in tune with the gains on Wall Street overnight. However, the upsides may be limited for the time being given that much of the market’s positivity are already reflected in the key index’s strong tear-to-date gains.
“Therefore, the key index may target the 1,670 level for now, before making a pass at the 1,675 level. The supports, on the other hand, are at 1,660 and 1,655 levels respectively,” Inter-Pacific said.
Meanwhile, Mercury Securities said the index is still trading above all of its moving averages, having bounced back from the mid-term uptrend line.
“Technical indicators are mixed, with the MACD trending below its signal line in the positive zone, while the RSI remains above the 50 marks.
“Moving forward, we expect the index to continue its rebound and potentially head towards the resistance at 1,692 points. On the downside, support is pegged at 1,627 points,” it added.
Among the gainers on Bursa Malaysia, Tenaga Nasional jumped 28 sen to RM15.02, PETRONAS Dagangan added four sen to RM18.08, Bursa Malaysia gained 12 sen to RM9.70 and Riverview Rubber Estates rose 10 sen to RM3.15.
Apollo Food
slid 30 sen to RM6.30, United Plantations fell 10 sen to RM26, Chin Hin lost 10 sen to RM26 and Inari declined nine sen to RM3.01.
