Tech counters rally ahead of US inflation report

KUALA LUMPUR: The FBM KLCI advanced in morning trade amid optimism that US inflation data tonight will show that rising costs had slowed in January.

At 12.30pm, the benchmark index rallied 8.68 points to 1,483.85. However, the market breadth turned negative with 399 decliners compared with 373 gainers as investors took profit off lower liners.

Technology stocks were among the most bullish of the day as the Nasdaq index has showed the most reactive to signs that US rate hikes may ease in the coming months.

The Bursa Malaysia Technology Index gained 0.5% to 65.25, on the heels of a jump in the US tech bellwether.

MPI rose RM1 to RM33.14, Hextar Technologies gained 38 sen to RM26.40 and KESM added 21 sen to RM9.01.

Meanwhile, leading blue chips on the FBM KLCI included Maybank up three sen to RM8.80, DIgi rising eight sen to RM4.22, Press Metal gaining 12 sen to RM5.27 and IOI rising 11 sen to RM3.87.

MYEG, which was halted for trading from 9-10am, was the most heavily traded counter with 209.14 million shares traded.

The government e-solutions firm rose two sen to 62.5 sen after announcing it would continue road tax and drivers licence renewal services despite the shift from physical documentation to app.

Other active counters included Hong Seng up one sen to 21 sen and Sapura Energy down 0.5 sen to five sen.

Key Asian markets bounced higher as they tracked Wall Street's optimism over the upcoming US consumer price index report.

Japan, which welcomed the appointment of its new central bank governor, Kazuo Ueda, saw its benchmark index lifted 0.6% to 27,594.

South Korea's Kospi climbed 0.9% to 2,473 while China's composite index erased earlier gains to settle flat at 3,282.

Hong Kong's Hang Seng meanwhile rose 0.2% to 21,211.