KUALA LUMPUR: The rally on Bursa Malaysia continued on Tuesday after a record-breaking performance on the US Nasdaq signalled investors were reacting positively to the anticipated start of a US rate cut cycle.
The Federal Open Market Committee meeting is only a week away, during which its members will decide on the benchmark lending rate moving forward. According to the CME FedWatch tool, there is a 100% chance of a rate cut of at least 25 basis points at the coming meeting, with 10.6% odds of a 50 basis points cut.
At 9am, Malaysia's benchmark FBM KLCI rose 1.39 points to 1,586.98, in line with the gains made in regional markets amid the uptick in sentiment for equities.
TA Securities said in its market commentary that futher improvement in external market tone and economic data is essnetial to sustain the recovery from recent weakness.
"Immediate support stays at 50%FR (1,527) with stronger supports seen at the 38.2%FR (1,490) and the 23.6%FR (1,444). Immediate resistance is capped at 1,610, the 76.4%FR, with next upside hurdle at the December 2024 high of 1,644, followed by stronger resistance at 1,684," said the research firm.
Rakuten Trade said in a note that buying support from local institutions remains apparent, underscoring that the local bourse is rather well supported.
"We believe stock accumulation to continue as we enter into the final quarter of 2025 with corporate environment still stable. For today, we anticipate the index to trend within the 1,585-1,600 range," it added.
Nestle was among the notable gainers, rising RM1 to RM95. Hong Leong Bank gained 18 sen to RM20.26 and Sunway climbed five sne to RM5.33.
Of actives, Pharmaniaga
was flat at 19.5 sen, Zetrix AI unchanged at 86 sen and MRCB up two sen to 49 sen.
