The local market’s commendable performance occurred amid a mixed regional performance, ahead of Friday’s release of the US personal consumption expenditures index, which could provide further clues on how much the US Federal Reserve (Fed) is likely to cut interest rates.
Meanwhile, UOB Kay Hian Wealth Advisors head of investment research Sedek Jantan said today’s performance was led by sectors linked to the data centre supply chain, such as telecommunications, as well as the construction sector.
“The construction sector exhibited an uptrend following a period of stagnation last week.
“Beyond the data centre narrative, we foresee a significant revitalisation of the construction industry,” he told Bernama.
Sedek said this will be supported by the anticipated roll-out of the Mass Rapid Transit 3 (MRT3) project in 2024/2025, coupled with flood mitigation initiatives reportedly valued at RM13 billion and a vibrant private sector construction market, driven by substantial investments in new semiconductor foundries and additional data centres.
Regional indices were mixed amid the broad decline on Wall Street overnight where technology stocks suffered as traders realigned their portfolios ahead of Nvidia Corp’s earnings announcement, to assess the strength of artificial intelligence-related sectors.
Regionally, Singapore’s Straits Times Index inched up 0.07% to 3,398.47, Hong Kong’s Hang Seng Index increased 0.43% to 17,874.67, and Japan’s Nikkei rose 0.47% to 38,288.62.
In contrast, South Korea’s Kospi decreased 0.32% to 2,689.25.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said energy stocks saw a boost after Libya’s eastern government announced an export halt.
“While sentiment remains cautious, we believe that Malaysian equities continue to offer favourable opportunities due to their cheap valuations and improving corporate earnings.
“However, in the near term, the benchmark index is likely to stay in consolidation mode as cautious trading persists amid rising global uncertainties and heightened geopolitical tensions in the Middle East,” he said.
As such, Thong said the FTSE Bursa Malaysia KLCI (FBM KLCI) is anticipated to trend sideways with an upside bias within the range of 1,640-1,660 for the remainder of the week.
At the close, the FBM KLCI rose 13.33 points to 1,652.29 from yesterday’s close of 1,638.96.
This level was the highest closing since Dec 21, 2020, when the index closed at 1,647.89.
The index opened 0.20 of-a-point higher at 1,639.16, its intraday low, and later hit an intraday high of 1,653.12 in the afternoon session.
However, the broader market was weaker as losers outnumbered gainers by 640 to 476, with 452 counters unchanged, 958 untraded, and 25 others suspended.
Turnover expanded to 3.18 billion units valued at RM3.19 billion from 2.82 billion units valued at RM2.62 billion yesterday.
Among the heavyweights, Maybank jumped 16 sen to RM10.70, Public Bank advanced 17 sen to RM4.68, CIMB increased four sen to RM7.93, while Tenaga was flat at RM13.92. IHH eased one sen to RM6.30.
As for the actives, Notion tumbled 19 sen to 89 sen, Elridge eased one sen to 44 sen, Cape EMS slid two sen to 36.5 sen, while Velesto inched up 0.5 sen to 22 sen, and MyEG was flat at 90 sen.
On the index board, the FBM Emas Index climbed 68.43 points to 12,420.74, the FBMT 100 Index rose 78.04 points to 12,110.56, and the FBM Emas Shariah Index gained 32.48 points to 12,325.1.
The FBM 70 Index increased by 41.41 points to 17,766.99, while the FBM ACE Index fell 17.23 points to 5,189.94.
Sector-wise, the plantation index eased 7.72 points to 7,214.66, while the energy index bagged 11.44 points to 946.88. The industrial products and services index edged up 0.64 of-a-point to 183.53, and the financial services index surged 237.98 points to 19,278.85.
The Main Market volume improved to 1.74 billion units worth RM2.9 billion from 1.49 billion units worth RM2.35 billion yesterday.
Warrants turnover increased to 956.31 million units valued at RM122.95 million from 889.14 million units valued at RM118.08 million, previously.
The ACE Market volume advanced to 487.62 million shares worth RM165.72 million from 435.91 million shares worth RM150.23 million yesterday.
Consumer products and services counters accounted for 218.6 million shares traded on the Main Market, industrial products and services (328.19 million), construction (100.27 million), technology (281.27 million), SPAC (nil ), financial services (161.49 million), property (220.15 million), plantation (24.44 million), REITs (9.45 million), closed/fund (49,600), energy (182.91 million), healthcare (49.57 million), telecommunications and media (38.89 million), transportation and logistics (58.84 million), utilities (66.65 million), and business trusts (93,500).