KUALA LUMPUR: The FBM KLCI bounced slightly higher on Monday as crude oil prices fell after fighting in the Gulf was halted, raising hopes for peace talks.
However, gains were capped by as trading remained cautious this week ahead of the Federal Open Market Committee meeting on Wednesday. The FBM KLCI was up 4.19 points or a quarter percent to 1,705.05 at 9.13am.
"While the Fed is still widely expected to leave interest rates unchanged for a fifth consecutive meeting, expectations of a surprise 25-basis-point rate hike have increased in recent days, reflecting renewed inflation concerns following the recent surge in oil prices," said Apex Securities in its market outlook.
The research firm said market sentiment is also likely to be influenced by the implementation of the US's new 10-12.5% tariffs on 60 trading partners, developments in the Middle East, and fluctuations in crude oil prices.
At the time of writing, Brent crude futures for September delivery was down 4.15% to US$92.75 a barrel.
Tech earnings will also be in focus tihs week with report cards from major US technology companies, including Microsoft, Meta, Apple, and Amazon, expected to provide further clues on AI-related capital expenditure and the broader market outlook.
Malaysia's banking blue chips rose, including Maybank up eight sen to RM10.86, CIMB rising seven sen to RM7.75, and Public Bank adding three sen to RM5.14.
IHH climbed nine sen to RM8.39 while Nestle put on 18 sen to RM90.80.
Active stocks on the market included Aimax unchanged at one sen, Tanco down 1.5 sne to 24.5 sen and VS Industry sliding 0.5 sen to 24 sen.
