KUALA LUMPUR: The FTSE Bursa Malaysia (FBM) KLCI opened lower, than the closing yesterday of 1,391.51, before picking up a point at 9.10am.
Rakuten Trade Sdn Bhd head of research Kenny Yee Shen Pin identified the benchmark index to maintain its uptrend and trade within the range of 1,385 to 1,395 range today.
The broader market was also positive with gainers leading losers 182 to 132, with 254 counters unchanged.
SPI Asset Management managing director Stephen Innes said Bursa is opening stronger today due to Malaysia's key commodity sectors especially oil, which is getting a lift from China.
"The prospect of credit extensions to property developers should see them attempt to monetize projects by accelerating construction to drive sales, boosting commodity demand."This is positive for the local market," he told New Straits Times.
In terms of the broader market, Innes expects a decline in US inflation to be announced today, to which he said will be positive for the KLCI. How much of a positive ti will be however is dependant on how much lower the US inflation is against the consensus.
UCSI University Malaysia assistant professor of finance Dr Liew Chee Yoong said the rebound of the Bursa may prolong longer.
Nonetheless, he said this is only a short-term fluctuation in the market.
Liew who is also a fellow at the Centre for Market Education, emphasised that investors are more concerned about long-term returns for example one year or more. Geopolitical issues are part of the contributing factor to the cautious sentiment portrayed by investors.
"Possibly, the easing of US-China relations with the visit by US Treasury Secretary Janet Yellen to China play a part among these factors," he said.
