KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Bursa Malaysia advanced at midday, driven by gains in YTL Power and YTL Corp as well as stronger performances in Asian markets following overnight gains on Wall Street.
At the lunch break, the FBM KLCI rose 4.26 points, or 0.26%, to 1,644.06, after hitting an intra-morning high of 1,649.87. The market breadth was positive, with 532 gainers outpacing 346 losers, while 412 counters remained unchanged. A total turnover of 1.62 billion shares valued at RM1.34 billion was recorded.
Dealers noted that Wall Street's gains had buoyed market sentiment, while investors closely assessed the latest U.S. inflation data and its potential impact on the global interest rate outlook.
Hong Leong Investment Bank Research indicated that the FBM KLCI is expected to trade sideways ahead of the upcoming Federal Open Market Committee (FOMC) meeting on September 18. The index is expected to find support at 1,613-1,628, with resistance levels at 1,650-1,660-1,690, reflecting a cautious outlook due to strong US core CPI data and the absence of additional rerating catalysts.
Among the top gainers, PETRONAS Chemicals added 10 sen to RM5.45, contributing 1.1741 points to the index. Both YTL Corp and YTL Power saw gains of 10 sen, reaching RM3.50 and RM2.50, respectively, contributing 1.6250 and 1.2128 points to the index's advance.
On the broader market, United Plantations jumped 60 sen to RM27.62, Malaysian Pacific Industries rose 52 sen to RM27.34, and Dutch Lady added 50 sen to RM30.88. Meanwhile, Nestle fell 40 sen to RM100.10, Hong Leong Bank lost 26 sen to RM21.24, Arka slid 15 sen to RM1.90, and Paragon Union declined 13 sen to RM3.23.
Overnight, Wall Street saw gains, with the Dow Jones Industrial Average up 0.31% to 40,861.71, the S&P 500 climbing 1.07% to 5,554.13, and the Nasdaq Composite rising 2.17% to 17,395.53.
TA Securities noted that blue-chip stocks are expected to remain within a range while awaiting the results of the closely monitored US inflation data and forthcoming interest rate decisions. Foreign interest in key banking and utility stocks is anticipated to limit any potential downside.
“Immediate index support remains at the recent correction low of 1,633, with stronger supports at 1,620 and 1,600,” TA Securities added. “Immediate resistance has been revised lower to 1,670, with tougher resistance levels at the recent high of 1,684 and the December 2020 high of 1,695.”
Comments
Post a Comment