KUALA LUMPUR: The FBM KLCI rebounded from a weaker opening on Thursday despite cautious sentiment following the US Federal Reserve’s latest interest rate hike.
The Fed raised its benchmark rate by 25 basis points to 3.75%-4.00%, its first hike since 2023, and signalled further increases ahead.
Overnight, the Dow Jones Industrial Average fell 1.21% to 51,461.78, the S&P 500 fell 0.44% to 7,552.14, and the Nasdaq fell 0.01% to 25,978.43.
Back home, the FBM KLCI rose 1.96 points, or 0.12%, to 1,681.17 at 9.20 am. The index had opened 1.71 points lower at 1,677.50.
Among the gainers on Bursa Malaysia, Heineken rose 34 sen to RM14.56, Carlsberg added 22 sen to RM12.60, Nestlé gained 16 sen to RM90.34 and YTL Power climbed 19 sen to RM5.70.
In contrast, Malaysian Pacific Industries
fell 70 sen to RM39, PETRONAS Chemicals eased 20 sen to RM5, Panasonic Manufacturing declined 15 sen to RM5.41 and Sunway Construction lost eight sen to RM7.
ACE Market debutant Pioneer Heat jumped 24%, or six sen, to 31 sen. It was Bursa Malaysia’s most active counter, with 40.4 million shares traded.
Rakuten Trade said the benchmark index was approaching oversold territory, providing scope for bargain hunting to emerge, particularly among fundamentally sound blue-chip stocks that had been sold down.
“Although geopolitical risks and elevated oil prices remain key headwinds, we expect the index to trade within 1,670–1,690 for today,” the brokerage said.
Meanwhile, Berjaya Research Sdn Bhd said the FBM KLCI could remain volatile in the near term as heightened geopolitical tensions and concerns over elevated oil prices continued to weigh on investor sentiment.
It noted that following the Fed’s first rate hike since July 2023, which saw rates raised by 25 basis points, the shift towards tighter monetary policy could further weigh on emerging-market equities.
“Against this backdrop, we expect market volatility to remain elevated, with investors likely to adopt a more cautious stance until there is greater clarity on the geopolitical situation and the trajectory of global interest rates,” the research house said.
Berjaya Research said that technically, the local bourse had gapped down and formed a bearish candlestick, drifting further from the 1,700 psychological level.
It said immediate resistance levels had shifted to 1,700 and 1,714 points, while support levels were seen at 1,676 and 1,670 points, respectively.
“The broader market is likely to remain cautious amid heightened geopolitical uncertainties, tighter U.S. monetary policy and subdued trading activity.
