KUALA LUMPUR: The FBM KLCI traded higher in early Friday trade, following overnight gains on Wall Street, where the Dow Jones Industrial Average surged to a record high amid optimism over the US economic outlook.
Overnight, the Dow rose 1.73% to 51,561.93, the S&P 500 gained 0.41% to 7,584.31, while the Nasdaq Composite slipped 0.09% to 26,830.96.
Back home, the FBM KLCI rose 3.02 points, or 0.18%, to 1,686.42 at 9.06 am, after opening 3.19 points higher at 1,686.45.
Among the gainers, United Plantations rose 54 sen to RM31.84, Nestle added 15 sen to RM95.38, Hong Leong Bank gained 11 sen to RM21.20, and Ajinomoto climbed 10 sen to RM14.34.
On the losers’ side, Malaysian Pacific Industries
slipped 58 sen to RM46.86, UMS Integration fell 49 sen to RM7.74, Kelington Group dropped 26 sen to RM7.64, and Heineken eased 20 sen to RM19.96.
Berjaya Research Sdn Bhd said the FBM KLCI may attempt to build on its recent gains as bargain hunting continues to support selected heavyweight counters.
However, the research house cautioned that gains may be capped as investors await the U.S. unemployment rate data due later tonight, which could provide fresh clues on labour market conditions and the Federal Reserve’s policy outlook.
Berjaya Research said a stronger-than-expected reading could reinforce expectations of a prolonged high-interest-rate environment. At the same time, a softer-than-expected print may revive hopes of policy easing, potentially influencing fund flows across regional equity markets.
“Technically, the key index formed a bullish candlestick and could attempt to find stability. The near-term resistance remains located at 1,688 points, followed by the 1,700 psychological level.
“On the other hand, the immediate support is pegged at the 1,665 points and thereafter at 1,650 points,” it said.
The research house said market sentiment may gradually improve on the benchmark index’s recovery, aided by bargain hunting in oversold stocks, though buying conviction could remain limited without fresh domestic catalysts.
Meanwhile, Rakuten Trade noted that the recent sell-down by foreign funds may be attributed to some Yen carry trades, and yesterday’s rebound suggests a possible tail-end for such activities.
“As such, we expect the index to trend between the 1,680-1,695 range today,” it added.
