KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Market Snapshot
Malaysian technology counters surged on Monday, tracking a regional rally as dovish signals from the US Federal Reserve lifted optimism for a September rate cut.
Bursa Malaysia Technology Index: +2%, highest since Feb 24, 2025.
Malaysian Pacific Industries (MPI): Jumped as much as 9% to RM27.74, despite lingering earnings concerns.
The move comes as capital inflows into Asia intensified, with investors positioning for potential monetary easing in the US.
Drivers of the Rally
Fed Pivot Hopes:
Fed Chair Jerome Powell’s Jackson Hole remarks — that the outlook “may warrant adjusting the policy stance” — reinforced bets for a 25bps September rate cut.
Lower rates reduce funding costs for capital-intensive tech firms and support growth-sector valuations.
Wall Street Lead:
Sentiment was buoyed by strong gains in the Magnificent Seven (Alphabet, Amazon, Apple, Broadcom, Meta, Microsoft, Nvidia) last Friday.
AI-related optimism continues to drive global tech appetite.
Emerging Market Flows:
Dovish Fed expectations encourage capital inflows into EMs, strengthening the ringgit and improving prospects for Malaysia’s growth-oriented sectors.
Earnings Watch
Investor focus now turns to Nvidia’s Aug 27 results, which could be pivotal for sustaining the global AI-driven rally. Stronger-than-expected earnings may spark another leg higher for AI-related stocks, while any disappointment could trigger a pullback.
Other notable tech earnings on the horizon: CrowdStrike, HP, Snowflake, Alibaba.
Investment Takeaways
Sector Momentum: Malaysian tech is benefiting from global AI enthusiasm and Fed pivot optimism, but near-term moves remain event-driven (e.g., Nvidia’s results).
Valuation Support: Lower borrowing costs could drive a re-rating of Malaysian chip and semiconductor players like MPI, Vitrox, Inari Amertron.
Risks:
A weaker-than-expected AI earnings season could spark corrections.
Domestic earnings softness still lingers for some names despite price momentum.
Ringgit volatility may affect foreign fund flows.
Bottom Line
Malaysian tech stocks are riding the global wave of AI optimism and Fed-driven liquidity hopes, with the Bursa Tech Index hitting a six-month high. Investors should watch Nvidia’s earnings closely, as it may decide whether this rally extends or fades.
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