FBM KLCI starts 2Q upbeat on economic developments

KUALA LUMPUR: The FBM KLCI started second-quarter trading on a positive note, bolstered by reassurances from the US Federal Reserve the inflation rate is moderating as expected.

At Monday's open, the benchmark index was up 1.43 points to 1,537.50, tracking optimistic Wall Street futures following last Friday's release of the US Personal Consumption Expenditure price index.

Global markets were relieved when Fed chair Jerome Powell said in remarks following the release of the PCE print that it was "pretty much in line with expectations" and the central bank was not surprised by the data.

Rising blue chips on Bursa Malaysia included Telekom Malaysia up seven sen to RM5.05, PETRONAS Chemicals gaining four sen to RM6.75, Genting adding three sen to RM4.73 and CIMB putting on three sen to RM6.67.

Carlsberg rose 16 sen to RM18.66 as news reports suggested brewers were set to raise beer prices from this month onwards. However, Heineken Malaysia gained only two sen to RM23.34.

Of actives, Sapura Energy was down 0.5 sen to 4.5 sen, Handal gained 1.5 sen to 10 sen and MMAG was flat at 19 sen.

According to Apex Securities Research, the FBM KLCI is coming off a strong first quarter poised for further gains, owing to the improving economic outlook that will be supported by the implementation of key economic blueprints.

Meanwhile, it said the lower liners are also turning fairly stable amid the positive market breadth.

"Moving into April 2024, investors will be focusing onto the barrage of US corporate earnings releases with estimated 1Q2024 earnings growth rate for the S&P 500 at +3.6% y-o-y," said the research firm in a note.