KUALA LUMPUR: Forecast-beating earnings from SK Hynix further propelled the AI-themed rally in regional markets, giving Bursa Malaysia an early lead in Wednesday trade.
While the key catalyst of the week remains the US Federal Reserve's rate decision on Wednesday, traders are turning optimistic ahead of Big Tech earnings releases including from Microsoft, Alphabet and Amazon.
"Barring a hawkish surprise from the Fed or a flare-up in the Middle East, we expect the FBM KLCI to extend its rebound, with the improved regional risk tone providing a supportive backdrop into the new trading session," said Apex Securities in its market outlook.
At 9.03am, the FBM KLCI was up 2.18 points to 1,614.42, led higher by financial heavyweights. Hong Leong Bank gained 16 sen to RM21.36, Maybank rose one sen to RM10 and AmBank added one sen to RM6.31.
Nestle jumped RM1.72 to RM96 following the previous day's positive earnings result. In energy, MISC climbed 15 sen to RM8.45.
Meanwhile, Apex expects technology shares to continue its run into Wednesday after Anthropic’s IPO filing fuelled a broader Asian chip rally, with Samsung and SK Hynix leading gains in Seoul.
"Utilities bears watching for follow-through after a strong session. Financial Services may see added volatility into the Fed’s rate announcement after a relatively muted +0.15% move on Tuesday," it added.
Separately, TA Securities noted the improving technical indicators and selective bargain-hunting on the local market.
However, it cautioned gains may remain limited as investors stay guarded ahead of earnings announcements from major U.S. technology heavyweights.
"Key overhead resistance for the index is capped at the Oct 2025 high (1,659), with tougher upside hurdles at the 1,700 psychological level and the 123.6%FP (1,759) going forward. Meanwhile, immediate support is set at
the 61.8%FR (1,564), with stronger support coming from the 50%FR (1,527) and the 38.2%FR (1,490)," it said in its technical note.
