KUALA LUMPUR: Bursa Malaysia opened higher on Thursday, tracking gains on Wall Street as bargain hunting continued, while investors awaited Bank Negara Malaysia’s interest-rate decision later today.
Overnight, all three major U.S. stock indices gained ground. The Dow Jones Industrial Average rose 0.56% to 53,061.89 points, the S&P 500 gained 0.46% to 7,666.63 points, while the Nasdaq Composite advanced 0.45% to 26,217.83 points.
The benchmark FBM KLCI rose 4.3 points, or 0.25% to 1,712.99 at 9.14 am. The index opened up 2.42 points at 1,711.16 earlier.
Among the gainers, UWC rose 20 sen to RM6.53, PETRONAS Gas added 18 sen to RM17.76, Hume Cement Industries gained 14 sen to RM3 and Solarvest climbed 11 sen to RM3.16.
In contrast, Kuala Lumpur Kepong slid 20 sen to RM22.50, Dutch Lady
fell 10 sen to RM31.70, Sarawak Oil Palms declined seven sen to RM5.89 and Heineken Malaysia lost six sen to RM15.92.
Berjaya Research expects the FBM KLCI to remain range-bound with a mild positive bias, supported by bargain hunting after the recent pullback and improved overnight sentiment on Wall Street.
“Investors will be keeping a close tab on Bank Negara Malaysia’s interest-rate decision later today, where the OPR is widely expected to remain unchanged at 2.75%, premised on the robust domestic growth momentum and still-contained inflationary pressures,” the research house said.
It added that the U.S. ISM Services PMI will be watched later tonight for further clues on the health of the U.S. economy and global risk appetite.
Technically,Berjaya Research said the local bourse has formed a mildly bullish candlestick, defending the 1,700 psychological level.
Further bargain hunting could lift the key index towards 1,722 and 1,727 points, while near-term support remains at 1,700 and 1,686 points.
Meanwhile, Malacca Securities expects the FBM KLCI to extend its rebound, supported by selective earnings and thematic plays, despite elevated oil prices and bond yields.
The research house said technical indicators remain encouraging, with the MACD histogram continuing to form a rounding bottom while the RSI holds above 50.
“Key resistance lies within 1,724–1,739, while near-term support is expected around 1,679–1,694,” it said.
