FBM KLCI pushes on as more US data points to rate cuts

KUALA LUMPUR: The FBM KLCI is rallying again as it takes its cue from Wall Street, which was buoyed overnight by a weak US labour report that heightened hopes of a rate cut in September.

Apex Securities Research said the local market is likely to mirror the positive momentum in the US but the upside potential may be capped due to concerns in banking heavyweights following the exclusion of AmBank from the index.

"Sector-wise, the technology sector is likely to extend its momentum, taking cue from the surge in the Nasdaq overnight.

"We remain bullish on logistics counters, particularly freight forwarders, supported by higher international ocean freight rates," said the research firm in a note.

On Wall Street, following the the private payroll report investors are now eyeing the US weekly jobless claims numbers and the May jobs report due out later this week.

At the open, the FBM KLCI up 3.29 points to 1,611.82 as the blue chips took flight on growing confidence in equities.

Tenaga Nasional rose 18 sen to RM13.44, YTL Power gained five sen to RM5.04, Press Metal climbed five sne to RM5.87 and MISC added 12 sen to RM8.62.

In banks, Hong Leong Bank rose 12 sen to RM19.46, Maybank added four sen to RM10.02 and Public Bank gained one sen to RM5.50.

The Bursa Technology Index was also higher by 0.53 points to 75 points, with leading gainers including Inari up six sen to RM3.47, D&O rising three sen to RM3.63 and Globetronic climbing seven sen to RM1.40.

Top actives were JCY up 2.5 sen to 64 sen, XOX down 0.5 sen to one sen and Velesto rising one sen to 27 sen.

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