Malaysia Stock Market May Add To Its Winnings On Thursday – BusinessToday

Malaysia Stock Market May Add To Its Winnings On Thursday – BusinessToday

The Malaysia stock market has ticked higher in two straight sessions, adding more than 7 points or 0.4 percent along the way.

The Kuala Lumpur Composite Index now rests just shy of the 1,620-point plateau and it’s poised to extend its gains again on Thursday. 

At 9.18am, the FBMKLCI rose +3.37 points to open at 1,621.16.

Malacca Securities (MSSB) said in a note today (July 11) that the FBM KLCI (+0.25%) ended higher as the index was lifted by buying interest in the Financial services and Utilities heavyweights, despite mixed overnight performance on Wall Street ahead of CPI and PPI data.

Investors were also focusing on mid cap stocks where the FBM70 has charged towards new high.

The Day Ahead
The FBMKLCI and FBM70 managed to close higher, but the Small Cap index slid marginally.

They expected the buying interest to stay firm supported by the performance on Wall Street.

In the US, the comments from Jerome Powell in the 2-day testimony, where he expressed concerns that the higher-for-longer interest rate environment may slow down the economic growth have boosted the appetite in the stock markets; the S&P500 and Nasdaq marked new territories led by technology related stocks, while the Dow added 1.1%.

Still, investors will be monitoring the upcoming CPI and PPI data later today and tomorrow.

On the commodity markets, Brent oil has rebounded off the support around USD84, and settled above USD85, while the gold price climbed gradually higher above USD2370.

Meanwhile, the CPO has fallen 6-day consecutively and is still trading below RM4,000.

Sectors focus: They opined that the overall bullish tone could revolve around the data center catalyst, the potential outcome announcement on KL-SG HSR in 2H24, the ongoing executions of NETR and NIMP masterplans.

Hence, they thought investors could position themselves within the Construction, Property, Building Material and Utilities stocks.

Also, they liked the Technology sector for its gradual recovering of earnings and tagging along the overall trend from the US stock markets.

Bloomberg FBMKLCI Technical Outlook
The FBM KLCI index ended higher towards the 1,618 level.

The technical readings on the key index were positive with the MACD histogram forming another positive bars and RSI surged above 50.

The resistance is envisaged around 1,633-1,638 and the support is set at 1,598-1,603.

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