KUALA LUMPUR: The buying momentum on the FBM KLCI is picking up speed as investor risk appetite improved amid confidence over the health of the global economy.
The benchmark FBM KLCI gapped up to the psychological 1,700-point level on Tuesday, its highest level in seven years, as the domestic market tracked record performances on Wall Street.
As at 9.21am, it was trading 7.3 points higher at 1,702.74.
Overnight, the Dow Jones and S&P500 hit fresh records after traders shrugged off anxieties over the criminal investigation into Fed chair Jerome Powell opened by federal prosecutors.
Malaysian banks powered higher, with Maybank surging 18 sen to an all-time high of RM11.14.
RHB Bank
also hit a fresh historical peak at RM8.06 after rising 16 sen. CIMB climbed eight sen to RM8.29, Hong Leong Bank gained four sen to RM23.34 and Public Bank put on five sen to RM4.64
The Kuala Lumpur Financial Services index charted a record after rising 0.9% to 20,395.39.
According to TA Securities, strengthening technical momentum suggests the index is poised to extend
gains in the immediate term, though lingering geopolitical uncertainties may temper investors' risk appetite.
"Immediate resistance is capped at the October 2015 high of 1,727, with next upside hurdle coming at the 123.6%FP (1,759), followed by tougher resistance at the 138.2%FP (1,804). Immediate support remains intact at the September 2016 low of 1,645, with stronger support coming from the 76.4%FR (1,610) followed by the 61.8%FR (1,564)," it said in its technical outlook.
Meanwhile, news of Sunway's proposed takeover of IJM has triggered buying in the latter stock, which jumped 11 sen to RM2.86 on active volume of 20.56 million shares, the third highest in early trade.
Sunway's shares slipped 14 sen to RM5.46.
