KUALA LUMPUR: The local bourse opened on a positive note, tracking Wall Street’s overnight advance after the U.S. Federal Reserve trimmed rates by 25 basis points.
Overnight, Wall Street closed higher after the Federal Reserve delivered the expected 25-basis-point rate cut.
The S&P 500 climbed 0.67% to 6,886.68, the Dow Jones Industrial Average gained 1.05% to 48,057.75, and the Nasdaq added 0.33% to 23,654.16.
Back home, the FBM KLCI rose 1.02 points, or 0.06%, to 1,612.02 at 9.13 am, after opening 1.86 points higher at 1,612.86.
Berjaya Research Sdn Bhd said the overnight U.S. Federal Reserve rate cut, which was widely anticipated, is expected to provide a more supportive backdrop for regional and domestic equities, including the FBM KLCI.
It noted that lower U.S. interest rates typically ease global financial conditions, reduce bond-yield pressures and bolster risk appetite, which could in turn encourage renewed foreign inflows into emerging markets.
“For Malaysia, the more accommodative external environment may help stabilise investor sentiment following the volatility of late. The key index gapped down before recouping most of its intraday losses to form a hammer candlestick, suggesting potential recovery over the short-term,” the research house said.
“Should a rebound materialise, upsides are limited towards the immediate resistance at 1,620 points, followed by 1,630 points.
“Meanwhile, the near-term supports remain envisaged at the 1,600-1,595 points,” it added.
The FBM KLCI closed slightly lower, holding just above the 1,610 mark but off the day’s low due to late buying interest.
Rakuten Trade said it continues to observe a lack of investor conviction amid the absence of fresh catalysts. “As such, we expect the index to hover within the 1,610–1,620 range today,” it added.
Among the gainers, Malaysian Pacific Industries
rose 30 sen to RM32.48, Hong Leong Financial Group added eight sen to RM17.94, Hong Leong Industries gained eight sen to RM15.80, and ViTrox climbed seven sen to RM4.34.
On the other hand, PETRONAS Gas slipped 24 sen to RM17.02, Gamuda fell 20 sen to RM4.93, while Time and Yinson each eased five sen to RM5.40 and RM2.3,0 respectively.
BMS Holdings, which debuted on the ACE Market of Bursa Malaysia on Dec 8, edged up one sen, or 5.26%, to 20 sen with 20.59 million shares traded, making it the most active counter.
