KUALA LUMPUR: The FBM KLCI ended the early session higher as regional investors reacted positively to reports the US is making plans to free ships held up in the Strait of Hormuz blockade.
Despite subdued trading in Asian due to the Mainland China and Japan markets staying closed for national holidays, equities rallied on the latest development, which also saw the retreat in crude oil prices to about US$108 a barrel.
Malaysia's benchmark index gained 8.82 points or about a half percent to 1,730.84. The broader market was positive with 589 advancing issues compared to 448 declining.
By sector, utilities led gains with a 1.1% incease. This was followed by financial services and plantations, which improved 0.7% increase and 0.3% respectively.
Overall market volume was 1.75 billion shares valued at RM1.19bil.
Investor sentiment on the domestic market has improved, coupled with a strengthening of the ringgit, following the International Monetary Fund's upgrade in its projection of the country's economy.
However, analysts reiterate caution with expectations the market will remain range-bound given the ongoing geopolitical risk in the Middle East.
"As technical momentum and trend signals remain subdued following last week's consolidation, the FBM KLCI is likely to continue trading sideways with a slight downside bias until fresh buying catalysts emerge to drive a
breakout," said TA Securities in its market outlook.
"Market sentiment is expected to stay fragile amid heightened volatility in the Middle East, where renewed concerns over potential military escalation between the U.S. and Iran are keeping investors cautious."
It cautioned inflationary risks from higher energy prices continue to cloud the economic outlook and may limit near-term upside for the FBM KLCI.
As the market closed for the lunch break, blue chips that ended higher included Maybank up 16 sen to RM11.24, SD Guthrie gaining 10 sen to RM6.30, Tenaga Nasional climbing 14 sen to RM14.68, Telekom Malaysia adding 12 sen to RM7.60 and YTL Power up 10 sen to RM3.92.
Most traded shares were SMRT up one sen to 18 sen, GIIB gaining five sen to 16 sen and Nova MSC unchanged at six sen.
