KUALA LUMPUR: A fresh boost of optimism is lifting the FBM KLCI to two-month highs as a rebound on Wall Street lent momentum to the equities rally.
Apex Securities said in a note it remains cautiously positive on Malaysia's main index as escalating Middle East tensions and concerns over potential oil supply disruptions are likely to keep oil prices elevated, providing continued support to energy-related counters.
Additionally, Bursa Malaysia's defensive sector composition should continue to provide support despite broader regional market volatility, it added.
The FBM KLCI was up 2.99 points to 1,722.93 at 9.10am, spurred on by Wall Street's overnight rebound as US inflation data came in cooler than expected.
The international benchmark for crude oil remained elevated around US$85 a barrel following the US's latest strikes on Iran, but eased off earlier highs after US President Donald Trump backed off from imposing a 20% toll on ships passing through the Strait of Hormuz.
According to Apex, the previous day's surge past the 1,700 psychological resistance confirmed that near-term sentiment had improved further. The research firm said a close above 1,720 would effectively invalidate the bearish "double-top" pattern.
"The next resistance to watch is the 1,760-1,770 zone, which corresponds to the previous swing highs. On the downside, the 1,674 level remains the key support to monitor," it added.
On the blue-chip index, plantations shares remained in demand with IOI rising nine sen to RM4.60 and SD Guthrie gaining 10 sen to RM6.60.
Maybank climbed six sen to RM11.06, PETRONAS Dagangan gained 14 sen to RM19.46 and Nestle rose 24 sen to RM90.74.
The most traded counter, Tanco, surged 7.5 sen to 39 sen. Enest, which transferred its listing to the ACE Market from the LEAP Market, dropped one sen to 12 sen.
PA Resources added two sen to 20.5 sen.
