KUALA LUMPUR: Malaysian equities started higher on Tuesday after a long weekend as a rebound in technology shares in the US lifted investor sentiment.
At the open, the FBM KLCI was drive higher about 10 points to 1,626.55. However, gains were capped as there remained heightened uncertainty on the market following the result of the recent US midterm elections, with observers speculating on whether the Democrats will dial back or slow the expansion plans of AI firms.
Wall Street staged a strong rebound on Monday night following the previous week’s volatility. The Dow Jones Industrial Average rose 2.15% to 52,389.75, the S&P 500 gaining 2.35% to 7,549.94 and the Nasdaq Composite advancing 2.74% to 25,253.14.
Technology stocks led the recovery, with AMD surging 13% and Broadcom gaining nearly 9%, although Nvidia fell 4% amid concerns surrounding its CEO.
On the domestic front, Apex Securities said Bank Negara's decision to maintain the OPR at 2.75% may provide near-term policy stability, although rising inflationary pressures could raise expectations of monetary tightening in 2027.
Meanwhile, the ongoing 3QFY26 earnings season, domestic political developments and the phased expansion of FBM KLCI constituents from 30 to 50 stocks may contribute to further market volatility.
"Nevertheless, Malaysia’s resilient economic growth outlook should provide some underlying support," it said in its market outlook.
Technology shares were among the biggest gainers on Bursa Malaysia, Vitrox rose 30 sen to RM10.42, UWC gained 23 sen to RM6.52 and MPI added 78 sen to RM36.98.
Leading actives included Zetrix AI down 0.5 sen to six sen, VS Industry rising one sen to 30.5 sen and AirAsia climbing 4.5 sen to 53 sen.
In commodities markets, Brent crude futures for January delivery idled around US$92 a barrel after Monday's slump as talks over resolving the conflict in Iran are expected to resume.
