Stocks in Bursa rise due to late buying, positive sentiment from regional markets boosts trading activity
FBM KLCI Bullish as US-China Trade Deal Nears
The FBM KLCI saw a bullish trend today, following a breakout above the key 1,540 resistance level. This positive momentum was driven by the optimism surrounding a potential trade agreement between the US and China, as stated by President Donald Trump.
According to Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng, the FBM KLCI is expected to trade within the range of 1,540 to 1,565 for the rest of the week, assuming the breakout holds and trading volume improves. Thong also noted that after a period of underperformance, the local market is now catching up with stronger-performing regional markets.
The FBM KLCI closed at 1,541.48, a 2.84 points or 0.19% increase from yesterday. The benchmark index opened 0.72 of-a-point lower but moved between 1,533.06 and 1,542.89 throughout the trading session.
Some of the notable movers in the market included Inari Amertron, which saw a decrease of 11 sen to RM1.86, and Tanco, which experienced a decrease of 3.5 sen to 78 sen. On the other hand, Ekovest saw an increase of 0.5 sen to 43 sen. Top Glove had a decrease of 2 sen to 61.5 sen.
The Main Market volume declined to 1.49 billion units valued at RM2.17 billion, while the turnover decreased to 2.51 billion units worth RM2.38 billion. Warrants turnover rose to 751.14 million units worth RM107.82 million.
The FBM Emas Index dipped 9.07 points to 11,532.90, and the FBM Emas Shariah Index eased 32.41 points to 11,536.59. The most active counter, NexG, remained unchanged at 53.5 sen. The FBMT 100 Index shed 2.80 points to 11,303.86, as the broader market was negative, with decliners outpacing gainers.
If an agreement is concluded, Trump plans to meet his Chinese counterpart, Xi Jinping, before the end of the year. This development could further boost the market sentiment and potentially see the FBM KLCI surpass the 1,560 level if the bullish bias continues into next week.
[1] Source: The Edge Markets (https://www.theedgemarkets.com/) [2] Source: Bernama (https://www.bernama.com/) [3] Source: Bursa Malaysia (https://www.bursamalaysia.com/) [4] Source: Bloomberg (https://www.bloomberg.com/)
- The positive trend in Malaysia's stock market, as indicated by the FBM KLCI, is also linked to advancements in technology and finance, as these sectors may benefit from a potential US-China trade deal.
- In the realm of health, improved economic conditions due to a trade agreement could lead to increased investments in research and development, resulting in innovative medical solutions.
- For transportation businesses in Malaysia, lower trade tensions could potentially reduce costs and enhance efficiency, facilitating smoother operations.
- In broader business perspectives, a US-China trade deal could widen the opportunities for Malaysian companies in various sectors, such as manufacturing and exports, leading to further growth and investment in the Malaysian economy.
