KUALA LUMPUR: Bursa Malaysia has extended its upward momentum to close at its highest level in more than seven years, supported by strong buying interest in blue-chip stocks from both local institutional and foreign investors, an analyst says.
At 5pm, the FBM KLCI soared 24.08 points or 1.40% to 1,744.07 from last Friday’s close of 1,719.99. The index surpassed its previous peak of 1,740.59 on Oct 17, 2018.
The barometer index opened 1.64 points firmer at 1,721.63, its lowest level in early trade, before climbing steadily to an intraday high of 1,746.98 during the mid-afternoon session.
However, market breadth was negative with decliners outnumbering gainers 631 to 591, while 498 counters were unchanged, 1,008 untraded and 39 suspended.
Turnover improved to 3.50 billion units worth RM4.07bil from last Friday’s 3.40 billion units worth RM3.49bil.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng told Bernama that buying interest continues to be broad-based, with sentiment still skewed to the upside.
He said the benchmark index remained firmly on an upward path after breaking several key historical levels and reaching fresh multi-year highs.
“That said, some profit-taking may emerge after several sessions of strong gains. As long as the index holds above the 1,700-1,720 support zone, the next leg higher remains intact,” he said, adding that he expects the FBM KLCI to trade within the 1,720-1,750 range this week.
Thong said the strengthening of the ringgit, which has appreciated to 3.97 to the US dollar, further lifted overall market sentiment.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the equity rally is not occurring in isolation but is being led and anchored by earlier appreciation in the currency.
“This currency-led sequencing, which contrasts with speculative episodes where equities typically lead and currencies lag, suggests investors are recalibrating Malaysia’s risk premium and positioning for a more durable, fundamentals-based repricing rather than chasing short-term gains,” he said.
Mohd Sedek opined that the FBM KLCI’s outstanding performance resulted from global fund managers’ continued increased exposure to Malaysian equities, reflecting a reassessment of its macroeconomic and policy fundamentals.
Additionally, the outperformance stood out against a mixed regional backdrop as investors assessed ongoing geopolitical developments and trade-related uncertainties. Among heavyweights, Malayan Banking Bhd
added 14 sen to RM11.50, Public Bank Bhd gained nine sen to RM4.87 and CIMB Group Holdings Bhd advanced 32 sen to RM8.62.
