KUALA LUMPUR: Malaysia's main stock index bounced higher on Friday after the previous day's profit-taking, even as the cautious sentiment over the return of the Trump administration continued.
The US stock market closed lower overnight in volatile trading following the release of data that pointed to a resilient labour market, and the possibility of fewer interest rate cuts in the coming year.
At the start of trading, the benchmark FBM KLCI was up 2.07 points to 1,634.94, with the index poised to end the first week of 2025 on a positive note.
Rakuten Trade expects the weakness seen in the domestic market in the previous session to be only temporary as market valuations will play a pivotal role while Malaysian stocks are reasonably priced.
"We expect the index to recover and hover within the 1,630-1,640 range today," said the research firm in a note.
Malacca Securities Research said in its outlook it favours the oil and gas sector amid the surge in Brent crude oil prices.
It also maintained a positive outlook on export-oriented sectors like glove and technology as the dollar index continued to edge higher above the 109 level, while the breakout in gold prices could present trading opportunities in gold-related counters.
"Moving forward, we expect data centre investments to begin materialising in earnings within the construction, building materials, and utilities sectors," it said.
Early gainers on Bursa Malaysia included Hong Leong Bank up 14 sen to RM20.56, Tenaga Nasional rising four sen to RM4.44 and Yinson
gaining five sen to RM2.67.
Top actives included Datasonic gaining 1.5 sen to 43.5 sen, VTC rising two sen to 54.5 sen and JCY dropping one sen to 56.5 sen.
