UOB Kay Hian Wealth Advisors head of investment research Sedek Jantan said the FTSE Bursa Malaysia KLCI (FBM KLCI) concluded the trading day on a positive note, surpassing the 1,680 mark during the early hours.
He said the US Federal Reserve’s potential pivot and increased risk appetite among foreign investors also contributed to this favourable market dynamic.
“Today’s performance mirrored the positive sentiment observed in the US equity markets, where rising consumer confidence bolstered investor optimism,” he told Bernama.
Sedek said the Bursa Malaysia Financial Index and Bursa Malaysia Utilities Index emerged as the standout performers in today’s trading session, while among the components of the FBM KLCI, financial and telecommunication stocks led the gains.
“Looking ahead, we anticipate sustained momentum within the financial sector in the upcoming quarter, driven by the prevailing bullish sentiment and continued strong earnings from financial services companies.
“In the utilities sector, we foresee bargain-hunting activity in oil and gas stocks following their impressive financial results,” he added.
He said beyond the banking and utilities sectors, the strengthening ringgit has positively impacted the consumer, construction, and building materials sectors.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI’s stronger performance today was in tandem with the solid regional performance.
“Most emerging markets continued with their upward trajectory, supported by persistent foreign buying amid the strengthening of Asian currencies against the US dollar,” he said.
“On the local front, the FBM KLCI closed at its highest level since December 2020.
“We are optimistic about the mid-term outlook of the market given the improvement in local market sentiment and the return of foreign funds,” he added.
At 5pm, the FBM KLCI rose 22.95 points or 1.38% to 1,675.24 from yesterday’s close of 1,652.29.
The nearest high was recorded at 1,681.41 on Dec 16, 2020.
The index opened 5.48 points higher at 1,657.77 and moved in the positive territory throughout the day with an intraday high of 1,681.37 and an intraday low of 1,657.77.
However, the broader market was weaker as losers thumped gainers 783 to 407, with 457 counters unchanged, 869 untraded, and 42 others suspended.
Turnover increased to 3.96 billion units valued at RM4.65 billion from 3.18 billion units valued at RM3.19 billion yesterday.
Of the heavyweights, Maybank jumped 16 sen to RM10.86, Public Bank advanced 12 sen to RM4.80, CIMB increased 45 sen to RM8.38, Tenaga Nasional added eight sen to RM14 and IHH gained one sen to RM6.31.
As for the actives, Luster was flat at 7.5 sen, while ACE Market debutant Vetece gained 15.5 sen to 40.5 sen, and MyEG inched up 0.5 sen to 90.5 sen.
Notion eased one sen to 88 sen and SP Setia dropped 19 sen to RM1.08.
On the index board, the FBM Emas Index climbed 49.85 points to 12,470.59 and the FBMT 100 Index rose 63.5 points to 12,174.06. However, the FBM Emas Shariah Index shed 91.21 points to 12,233.89.
The FBM 70 Index narrowed by 296.3 points to 17,470.69 and the FBM ACE Index dipped by 70.31 points to 5,119.63.
Sector-wise, the plantation index garnered 79.09 points to 7,293.75, the financial services index surged 546.09 points to 19,824.94, while the industrial products and services index went down 1.34 points to 182.19, and the energy index declined 22.27 points to 924.61.
The Main Market volume improved to 2.48 billion units worth RM4.38 billion from 1.74 billion units worth RM2.9 billion yesterday.
Warrants turnover decreased to 897.39 million units valued at RM97.25 million from 956.31 million units valued at RM122.95 million previously.
The ACE Market volume advanced to 578.98 million shares worth RM176.43 million from 487.62 million shares worth RM165.72 million yesterday.
Consumer products and services counters accounted for 242.3 million shares traded on the Main Market, industrial products and services (687 million), construction (178.17 million), technology (340.22 million), SPAC (nil), financial services (295.74 million), property (287.75 million), plantation (30.82 million), REITs (12.03 million), closed/fund (20,500), energy (129.1 million), healthcare (95.28 million), telecommunications and media (47.03 million), transportation and logistics (41.03 million), utilities (91.65 million) and business trusts (345,700).