KUALA LUMPUR: Bursa Malaysia is staying range-bound but with some cautious optimism expected to stir buying activity amid agreements struck between the world's two largest economies during the Trump-Xi summit.
The meeting between the US and China presidents has helped to ease tensions, with both leaders agreeing to keeping the Strait of Hormuz open to maintain global oil supply.
However, with reports of Iran seizing vessels in the Straits, Brent crude futures for July delivery remained hovering near the US$106 a barrel level.
Trading on the FBM KLCI remains subdued, opening just 2.09 points higher at 1,747.69 and poised to end the week in a narrow consolidation channel.
"For the FBMK LCI, sentiment may improve modestly on the diplomatic progress, though investors are likely to remain selective and range-bound pending concrete follow-through on the Trump-Xi commitments and clarity on Iran's response," said Apex Securities in its market outlook.
Meanwhile, the research firm said technology remained its sector pick in the near-term as momentum accelerated after the US cleared about 10 Chinese firms to purchase Nvidia's H200 chips.
Energy stocks, meanwhile, may see some near-term profit-taking as the Trump-Xi agreement on the Strait of Hormuz introduces tentative deescalation hopes, it added.
Among Bursa Malaysia's most active stocks, AirAsia X
fell three sen to RM1.19, Nationgate rose 1.5 sen to 88.5 sen and Genetec gained 2.5 sen ot 35.5 sen.
Energy stocks slumped including PETRONAS Dagangan down 70 sen to RM20.68, PETRONAS Gas falling 18 sen to RM18.02 and Gas Malaysia shedding six sen to RM5.38.
