KUALA LUMPUR: The FBM KLCI ticked higher after an extended holiday weekend as it played catch-up to global markets amid rising sentiment over a dovish Federal Reserve.
Malaysia's benchmark stock index hit the crucial 1,600-points level at the close before the market shut its doors for a four-day weekend in conjunction with Malaysia Day.
According to TA Securities, the short- and medium-term technical momentum and trend indicators on the FBM KLCI remains largely bullish, pointing to a continued upward trajectory in the coming week.
"Investor sentiment is also expected to stay positive, buoyed by growing expectations that the U.S. Federal Reserve will implement an interest rate cut later in the week.
"However, the lack of strong domestic catalysts, combined with a shortened trading week could moderate the pace of gains," it said in its market commentary.
Menawhile, Malacca Securities said in its own note that the local bourse could be spurred ahead by the highly anticipated Federal Open Market Committee (FOMC) meeting scheduled to take place later today.
The research firm also noted the US market is being supported by optimism over US-China trade talks and progress over a TikTok ownership deal.
"Hence, we expect Wall Street to trade on a positive note ahead of the FOMC meeting, which would benefit sectors like REITs and consumer discretionary."
The FBM KLCI rose 2.09 points to 1,602.22 at Wednesday's open, with leading gainers including CIMB gaining nine sen to RM7.46 and IHH Healthcare climbing 14 sen to RM7.38.
Sunway rose 12 sen to RM5.43, Press Metal
added six sen to RM5.71 and SD Guthrie gained six sen to RM5.24.
Utilities took a back seat as Telekom Malaysia dropped 44 sen to RM7.16 while Tenaga Nasional shed six sen to RM13.32.
Of actives, Pharmaniaga gained 0.5 sen to 25.5 sen, VS Industry was down 0.5 sen to 54 sen and Dnex rose 0.5 sen to 26 sen.
