KUALA LUMPUR: The FBM KLCI rose in early Friday trade, following gains on Wall Street after the US Federal Reserve announced a 25-basis-point interest rate cut.
The market bellwether gained 1.18 of a point, or 0.07% to 1,624.46 at 9.17 am. The index opened up 4.34 points at 1,627.62 earlier.
Overnight, the S&P 500 gained 44.06 points, or 0.74%, to 5,973.10 and the Nasdaq Composite gained 285.99 points, or 1.51%, to 19,269.46. The Dow Jones Industrial Average fell 0.59 point, or flat, to 43,729.34
Malacca Securities anticipates stronger-than-expected sentiment in the US, bolstered by expected corporate tax cuts, while remaining cautiously optimistic on the local front.
Also, the interest rate spread between the US and Malaysia may support the ringgit, albeit at a more moderate pace.
“With Wall Street reaching new highs, fuelled by the positive ‘Trump sentiment’ and the rate cut, we expect buying interest to spill over into the local market, particularly in the technology sector as the ringgit environment still favours the export-driven companies.
“Besides, as we approach earnings season, we believe that earlier data center projects will begin contributing to earnings. As a result, we expect sectors such as construction, building materials, and property to perform well in the near term,” Malacca Securities said.
Apex Securities said the market might extend its decline as investors repositioned into Chinese stocks, anticipating fresh stimulus from the NPC meeting to boost the economy.
China concludes its 5-day NPC standing committee meeting today.
“Sector-wise, the plantation sector may attract buying interest as crude palm oil (CPO) prices continue to surge. Meanwhile, the technology sector may see some profit-taking activity following two days of rally,” it said.
Among the gainers on Bursa Malaysia, Heineken rose 18 sen to RM22.62, United Plantations gained 10 sen to RM28.20, Hong Leong Industries added 10 sen to RM13.42 and CIMB climbed eight sen to RM8.26.
Malaysian Pacific Industries
slid 60 sen to RM26.88, F&N fell 38 sen to RM29.32, Hong Leong Financial Group lost 24 sen to RM18.40 and Pentamaster gave up 15 sen to RM3.85.
