KUALA LUMPUR: Bursa Malaysia rebounded in early trade on Friday, tracking Wall Street’s overnight recovery, although analysts expect investors to remain cautious and selective amid lingering concerns over US bond yields and oil prices.
Overnight, US stocks recovered from early losses to close slightly higher on Thursday as a global bond selloff eased, pulling Treasury yields back from multi-decade highs.
The Dow Jones Industrial Average rose 0.04% to 50,926.74, the S&P 500 gained 0.20% to 7,666.48 and the Nasdaq Composite gained 0.04% to 26,871.60.
Back home, the FBM KLCI rebounded in early trade, gaining 5.37 points, or 0.33%, to 1,635.73 at 9.27am, supported by gains in selected heavyweights including banking, healthcare, energy and industrial stocks.
Among the gainers, Malaysian Pacific Industries
(MPI) rose 58 sen to RM41.70, while IHH Healthcare gained 20 sen to RM7.90 and UWC added 17 sen to RM7.27.
Hengyuan Refining advanced 19 sen to RM3.83 after the refiner appointed Erkki Tapio Ranta as its chief executive officer, effective Oct 1.
In contrast, MISC fell 14 sen to RM7.54, Hong Leong Industries shed 12 sen to RM16.02, while RHB Bank lost five sen to RM7.42 and AMMB Holdings eased four sen to RM6.35.
“We expect the FBM KLCI to trade with a cautious tone, with investors likely to keep a close tab on US bond yields and oil prices,” Berjaya Research Sdn Bhd said.
The research house said attention would also turn to US unemployment data later tonight, as signs of a softer labour market could shape expectations for the Federal Reserve’s monetary policy path and provide some relief to global equities.
“With the key index slipping into oversold territory, potential mild bargain hunting may resurface amid the easing US 10-year Treasury yield as well as the pullback in oil prices,” it said.
Berjaya Research pegged immediate resistance at 1,657 to 1,663 points, with support at 1,625 points, followed by 1,620 points.
“The broader market is also likely to remain cautious as the prevailing uncertainties continue to weigh on risk appetite. Still, selective accumulation could emerge in fundamentally sound counters should external headwinds ease,” it said.
Meanwhile, Malacca Securities expects sentiment on the FBM KLCI to improve, tracking Wall Street’s rebound, although investors are likely to remain selective and focus on potential beneficiaries of Budget 2027, which will be tabled next Friday.
Malacca Securities said investors could look at ViTrox, which is seeing stronger demand for high-precision inspection solutions amid the shift towards AI infrastructure and advanced packaging, and QES, following its expansion into China’s X-ray semiconductor inspection market.
It also said Hartanah Kenyalang, which has a record order book of RM851mil, equivalent to about 6.8 times its FY25 revenue, and could benefit from infrastructure-related initiatives in East Malaysia under Budget 2027.
