FBM KLCI rises as regional sentiment perks up

KUALA LUMPUR: The FBM KLCI trended upward at the midday break on Wednesday as regional sentiment improved on hopes of an interest rate pause by the U.S. Federal Reserve.

At 12.30pm, the FBM KLCI added 3.85 points, or 0.28% to 1,852.52.

Gainers led losers by 396 to 338, while 413 counters traded unchanged. Volume was 1.7 billion shares valued at RM832.5mil.

U.S. consumer price data showed inflation barely rose in May, increasing expectations the Federal Reserve will pause hiking interest rates.

Overnight, the Dow rose 145.79 points or 0.4% to 34,212.12 and the Nasdaq advanced 111.40 points or 0.8% to 13,573.32. The benchmark S&P 500 gained 0.69% to settle at 4,369.01 points.

Rakuten Trade Sdn Bhd reckoned the index to improve taking the positive cue from Wall Street and expects it to hover within the 1,380-1,390 range today.

“We believe buying interests may persist on Tech stocks but caution that profit-taking activities may emerge following a sharp spike-up since end-May,” it said.

TA Securities said stocks should stay range-bound at current oversold and depressed levels, as investors await confirmation from the US FOMC’s decision to either pause or raise interest rates this month.

“Immediate overhead resistance for the index will be at 1,400, with 1,420, followed by the 200-day moving average at 1,449, acting as stronger resistance levels. Crucial support will be last week’s low of 1,369, with stronger chart supports at 1,350, 1,320 and 1,300,” it said.

Technology and semiconductor-related stocks are among the top gainers on Bursa Malaysia. KESM gained 14 sen to RM7.15, Greatech rose eight sen to RM4.48, Malaysian Pacific Industries added 12 sen to RM29.10, UWC advanced 10 sen to RM3.36 and Inari climbed 12 sen to RM2.82.

Among the losers, Hextar Technologies slid 40 sen to RM26.50, Kuala Lumpur Kepong fell 32 sen to RM21.58, Allianz eased 30 sen to RM14.08 and Batu Kawan eased 20 sen to RM20.62.