Rakuten Trade's Thong expects the FBM KLCI to trend range bound between 1,585 and 1,615 for the remainder of the week.
PETALING JAYA: Bursa Malaysia finished slightly higher yesterday as gains in utility stocks helped offset selling pressure in the plantation sector.
At 5pm, the FBM KLCI rose 1.10 points to 1,604.25 from Tuesday’s close of 1,603.15.
The benchmark index opened 1.81 points lower at 1,601.34 and moved between 1,600.83 and 1,609.41 throughout the day.
Market breadth was positive as advancers beat decliners 590 to 480, while 494 counters remained unchanged, 893 untraded and 44 suspended.
Turnover expanded to 3.19 billion units valued at RM2.96bil versus 2.54 billion units valued at RM2.37bil on Tuesday.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan told Bernama that the utility sector index gained 1.8%, bolstered by earnings announcements from key players in the sector.The market strength was also evident in the FBM Small Cap, FBM Mid Cap, and FBM ACE indices but some sectors fell due to late selling, he noted.
“Looking ahead, market participants are shifting their focus to a series of pivotal US economic data releases including the Personal Consumption Expenditures (PCE) Index, personal income and spending figures, and the revised estimate for third-quarter gross domestic product (GDP).
He noted that the October PCE report is expected to highlight persistent inflationary pressures, with core PCE projected to rise 0.3% month-on-month and headline PCE likely increasing by 0.2%, mirroring September’s figures.
On a year-on-year basis, core PCE is forecast to edge up to 2.8% from 2.7%, while overall PCE is anticipated to rise to 2.3% from 2.1%, indicating that inflation remains above the US Federal Reserve’s (Fed) 2% target.
“Persistently high inflation could reinforce the case for maintaining the current pause in rate hikes at the Fed’s upcoming meeting,” he said, adding that the 3Q GDP estimate is expected to hold steady at 2.8%.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said a narrow decline in China’s industrial profits by 10% in October compared with the 27.1% plunge in September may help to lend some support to the local bourse.
Hence, he expected the FBM KLCI to trend range bound between 1,585 and 1,615 for the remainder of the week.
Heavyweights YTL Power International Bhd
garnered 22 sen to RM3.42, YTL Corp Bhd was 14 sen higher at RM2.09 and RHB Bank Bhd added 11 sen to RM6.78.
In contrast, Kuala Lumpur Kepong Bhd fell RM1.12 to RM20.50 and Petronas Chemicals Group Bhd shaved 12 sen to RM4.73.
Among the active stocks, Genetec Technology Bhd soared 29.5 sen to RM1.17, MBSB Bhd rose two sen to 74.5 sen, JCY International Bhd added five sen to 40.5 sen, Globetronics Technology Bhd expanded six sen to 59 sen, and Cape EMS Bhd slid half-a-sen to 35.5 sen.
