KUALA LUMPUR: Investors on the local market have latched on to the growing momentum in equities following the Federal Reserve's recent large rate cut.
Spurred on by record-breaking performances in the S&P500 and Dow Jones overnight, the FBM KLCI jumped 5.03 points higher to 1,670.68 at Friday's open, putting it on track to end the week on a 2% gain.
US markets took off after the release of weekly unemployment claims that came in below expectations at 219,000 versus a consensus estimate of 230,000, helping to ease concerns the US economy was at risk of falling into a recesssion.
"Traders reassessed the rate cut, shifting the narrative from recession concerns to extending economic expansion by the Fed," said Malacca Securities Research in a note.
The research firm said the local technology sector is expected to follow the Wall Street rally.
Meanwhile, the ringgit, which hit a 28-month high of 4.20 on Thursday, should benefit sectors such as consumer, utilities, financial and automotives, it said.
Additionally, the research firm believes earnings from data center projects will start materialising in the next few quarters, so construction, building materials, and property sectors could perform well heading into 2025.
Notable gainers in early Friday trade included F&N jumping 78 sen to RM30.98, MPI rising 36 sen to RM28.16 and United Plantation adding 22 sne to RM16.80.
Gamuda soared 14 sen to RM8.29, KESM jumped 12 sen to RM5.12 and Pentamaster rose 11 sen to RM3.86.
Top actives were Genetec surging 6.5 sen to RM1.01, Cape EMS up one sen to 39 sen and Globetronics adding two sen to 62.5 sen.
