FBM KLCI starts week strong on rate cut hopes, Q1 GDP boost

KUALA LUMPUR: The FBM KLCI started the week on a high note, boosted by expectations of global rate cuts and strong first-quarter 2024 gross domestic product (GDP) data announced last Friday.

The benchmark index rose 7.67%, or 0.47% to 1,624.29 at 9.22 am. It opened 1.66 points higher at 1,618.28.

Inter-Pacific Research said the near-term market conditions are likely to remain sanguine, bolstered by the country’s strengthening economic outlook as well as the continuing gains in key global indices that will help to preserve the upward streak for now.

“As it is, investor confidence is picking up and this will continue to fuel the near-term gains as well as to cast aside the already toppish technical indicators, delaying the overdue market consolidation,” it said.

Inter-Pacific said conditions on Bursa Malaysia will also be buoyed by hopes for interest rate cuts in the coming months that will be supportive to the country’s export performance and currency performance.

“With the key index still looking the tip-up further, the immediate target is now at the 1,620 level, which is followed by the 1,623-1,626 levels. On the downside, supports are pegged at the 1,611 points and the 1,600 level respectively,” it added.

Among the gainers on Bursa Malaysia, Arka rose 22 sen to RM2.24, Hong Leong Industries gained 20 sen to RM11.28, Panasonic Manufacturing added 20 sen to RM19.68 and Nestle climbed 20 sen to RM129.70.

Allianz slid 36 sen to RM23.02, Dutch Lady fell 14 sen to RM32.86, Malaysian Pacific Industries lost eight sen to RM26.52 and Malaysia Airports declined six sen to RM10.10.

Meanwhile, Apex Securities reckoned the positive momentum may extend moving into the start of the week, taking a cue from the upbeat tone from Wall Street last Friday, alongside the solid first quarter 2024 GDP data announced last Friday.

“The lower liners are also in a strong position, riding onto the positive market sentiment alongside with the returns of foreign fund inflow. For the week ahead, investors will be shifting their attention towards a slew of corporate earnings releases on the local front.

“Economic-wise, investors will also keep a close tab on Malaysia’s trade data to be released later today. We favour the gold-related players riding on to the higher gold prices. Sarawak-related stocks may be in focus with the state government's aims to achieve RM16.0bil in revenue for 2024,” Apex said.

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FBM KLCI , KLCI , Bursa Malaysia


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