Kuala lumpur: Bursa Malaysia traded higher on Monday, buoyed by renewed buying interest in selected banking and telecommunications heavyweights, an analyst stated. At the close of the trading session, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased by 6.69 points, or 0.39 percent, to 1,714.79, compared to the previous Friday's close of 1,708.10. The index opened slightly higher and oscillated between 1,708.26 and 1,715.29 throughout the day.
According to BERNAMA News Agency, the broader market displayed a negative trend with 611 losers surpassing 488 gainers, while 580 counters remained unchanged, 1,109 were untraded, and 25 were suspended. Turnover decreased to 3.60 billion units valued at RM2.45 billion, down from 4.33 billion units valued at RM2.98 billion on Friday.
Rakuten Trade Sdn Bhd's equity research vice-president, Thong Pak Leng, noted mixed results among major regional indices following a weaker performance on Wall Street. Yet, technology stocks showed resilience due to renewed optimism in artificial intelligence, sparking demand for chipmakers. In China, sentiment received a boost after Beijing announced a 360 billion yuan capital injection into state-owned banks and insurers, with 300 billion yuan funded via special Treasury bonds to strengthen financial institutions and sustain credit growth.
Thong highlighted caution for the local bourse despite the positive close, citing elevated crude oil prices and the rising United States 10-year Treasury yield as concerns. He pointed out that higher energy prices could maintain global inflationary pressures, while rising bond yields might weigh on risk appetite as investors reassess the outlook for US interest rates. Nonetheless, he suggested that buying in banking and telecommunications heavyweights, along with strong domestic fundamentals, should support the benchmark index.
Looking ahead, Thong expects the FBM KLCI to remain range-bound in the short term as investors navigate supportive domestic factors against ongoing external uncertainties. He emphasized monitoring developments in West Asia, global bond yields, and upcoming US inflation data for insights into the Federal Reserve's policy direction. With buying interest likely on weakness but external challenges limiting a stronger advance, Thong anticipates the FBM KLCI to trade within the 1,700-1,730 range.
Meanwhile, IPPFA Sdn Bhd's director of investment strategy and country economist, Mohd Sedek Jantan, mentioned that the local bourse's resilience amid higher US Treasury yields indicates reduced sensitivity to shifts in US rate expectations, with investors favoring sectors supported by steady earnings and domestic demand. He noted that broad-based gains suggest market strength is not confined to a single sector, offering a healthier backdrop for the index.
Among the heavyweights, Maybank and Public Bank saw gains, while CIMB remained flat, and IHH Healthcare experienced a decline. Active stocks such as Zetrix AI and HHRG rose, while others like Ingenieur Gudang and Capital A saw declines. Top gainers included Petronas Gas and Malaysian Pacific Industries, whereas Nestle and Hong Leong Industries were among the top losers.
On the index board, several indices showed gains, including the FBM ACE Index and the FBM Emas Index, while others like the Industrial Products and Services Index remained unchanged. The Main Market volume experienced a decline, while the ACE Market volume surged. Various consumer products and services counters dominated trading on the Main Market.