KUALA LUMPUR: The FBM KLCI slipped on Tuesday as the market looked ahead to the tabling of Budget 2026, while on the external front, investors awaited remarks by Federal Reserve policymakers this week.
The benchmark index edged higher in the previous session as foreign funds continued to flow into the domestic market, cumulating in a net total of RM812mil over the last three trading days, according to Rakuten Trade.
"In addition, we also saw signs of improving retail participation over the last few days on improving trading volume," it said in a note.
The broker expects a bullish trajectory for the index, hovering in the 1,635-1,645 range over the course of the day.
However, pressure to take profit was building on Bursa Malaysia, giving the FBM KLCI a softer Tuesday open of 1,636.06, a 2.03-point drop over the previous day's close.
Overnight, investors on Wall Street continued to ignore the US government shutdown in light of a potentially game-changing deal between AMD and OpenAI.
The S&P500 and Nasdaq rose to fresh record closing amid news AMD would supply AI chips to OpenAI while the ChatGPT creator could acquire as much as 10% in the chipmaker.
The deal could provide fresh optimism for the local tech sector, giving semiconductor shares a boost, said Malacca Securities in a note.
"Given the AI and technology optimism in the US, we expect the local bourse to open on a firmer note, with positive buying sentiment spilling over into technology stocks and EMS players; the latter had noticed strong buying support yesterday in
stocks like EG Industries
and PIE Industrial," it said.
