KUALA LUMPUR: Optimism is building on the domestic market after Wall Street's overnight rally, as investors cheered on the decline in oil prices amid the US' and Iran's efforts to hammer out a lasting peace deal.
Malaysia's key stock index was up a slight 0.62 points to 1,726.35, suggesting that while investors have welcomed recent developments, caution prevails given the uncertain geopolitical environment in the Middle East.
Brent crude futures for Oct delivery were down over 7% in the previous session to under US$84 a barrel as traders bet on the passage of oil supplies from the Gulf region. The international benchmark for crude prices continues to hover between US$84-85 a barrel, pending further developments in the ongoing peace talks.
Apex Securities said attention is gradually shifting towards the release of the Federal Open Market Committee minutes on Wednesday, and Friday's US non-farm payrolls for further policy and economic signals.
"Overall, we expect improving external sentiment to underpin buying interest, although stock selection is likely to remain driven by the ongoing earnings season," it said in its market outlook.
Apex expects the technology sector to remain volatile amid a mixed semiconductor performance. It said energy and transport-related coutners may benefit from the lower price of crude oil while financial services could continue to draw support from the improving market sentiment.
In the early market, Sunway Construction jumped 12 sne to RM7.87 following the previous day's announcement it had secured a data centre project from a US multinational in Johor.
Semiconductor plays were also on the rise; MPI rose 66 sen to RM46.68, Vitrox gained 25 sen to RM8.95 and Frontken climbed eight sen to RM5.10.
Among actives, Nationgate gained three sen to RM1.26, GIIB added one sne to 45 sen and Kinergy was flat at 41.5 sen.
