KUALA LUMPUR: Bursa Malaysia opened higher on Wednesday, staging a mild rebound despite cautious sentiment amid elevated US bond yields and lingering geopolitical uncertainties.
US stocks ended slightly lower on Tuesday as elevated bond yields weighed on sentiment. The Dow Jones Industrial Average fell 0.26% to 51,349.92, the S&P 500 lost 0.17% to 7,670.84 and the Nasdaq Composite declined 0.08% to 26,797.54.
On the local front, the FBM KLCI rose 5.20 points, or 0.33%, to 1,649.16 at 9.26am. The index opened 2.53 points higher at 1,646.49.
Among the gainers, Tenaga Nasional rose 18 sen to RM12.90, Allianz Malaysia
gained 14 sen to RM21, Hengyuan warrants added 13 sen to 28 sen, while Gamuda and Jati Tinggi Group advanced 10 sen and nine sen to RM5.08 and RM1.33, respectively.
On the downside, Eurospan fell 25 sen to RM2.99, Hengyuan lost 18 sen to RM4.16, PETRONAS Dagangan shed 14 sen to RM19.18 and Aeon Credit declined 13 sen to RM5.06.
“The near-term outlook for the FBM KLCI remains tilted to the downside, with investors likely to stay cautious amid lingering geopolitical uncertainties and a lack of fresh domestic catalysts,” Berjaya Research Sdn Bhd said.
It said attention will turn to US job openings and consumer confidence data later tonight for cues on the Federal Reserve’s policy path and global risk appetite.
Softer-than-expected readings could support equities, while resilient labour demand or weaker consumer sentiment could fuel volatility.
Berjaya Research said the local bourse could stage a technical rebound, although gains are likely to remain measured, with immediate resistance at 1,665 to 1,683 points.
It pegged support at 1,640 points, followed by 1,630 points.
“The broader market may see mild bargain hunting following the recent selloff, particularly in oversold lower liners, as oil prices eased after Saudi Arabia restored about half the capacity of its East-West pipeline following drone attacks,” it said.
Nevertheless, it said caution is likely to persist ahead of the release of the FOMC minutes, while elevated 30-year US Treasury yields, which have surged to their highest level since 2002, could limit risk appetite in the near term.
Meanwhile, Malacca Securities expects sustained interest in data centre infrastructure and regional expansion plays as Malaysia continues to strengthen its digital infrastructure ecosystem.
It said Powerwell could attract attention following its strategic collaboration with Socomec to develop integrated power train units for large data centres and hyperscale facilities.
UMS Integration may also be in focus after proposing a RM450mil private placement, with RM332mil earmarked for its Penang expansion and RM111mil for projects in Vietnam and Singapore.
Kelington Group, meanwhile, remains on the radar following its record RM1.8bil contract win on Sept 14, which lifted its order book to more than RM3.6bil and extended earnings visibility through 2029.
