KUALA LUMPUR: Bursa Malaysia closed higher today in tandem with regional markets, supported by softer-than-anticipated US inflation data, analysts said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.04 per cent or 15.12 points to end its intraday high of 1,466.84 from Tuesday's closing of 1,451.72.
The index opened 1.89 points higher at 1,453.61, its lowest point today.
Turnover widened to 3.94 billion units valued at RM2.21 billion from Tuesday's 3.08 billion units valued at RM1.77 billion.
SPI Asset Management managing director Stephen Innes said this unexpected economic data sparked speculation that the US Federal Reserve may conclude its current cycle of interest rate hikes.
Adding to the positive momentum, China reported stronger-than-expected retail sales, contributing significantly to the bullish trend.
"The upbeat sentiment was further buoyed by the People's Bank of China injecting a substantial 600 billion yuan (US$83 billion) into the financial system, fostering a more favourable local market outlook," he told Business Times.
On the local front, Rakuten Trade equity research vice-president Thong Pak Leng said the upward trajectory on local bourse was also contributed by key movers including consumer products, plantation, energy, and banking stocks.
"The benchmark index has broken the 1,465 resistance level, supported by strong buying from foreign funds and retail investors," he said.
Regionally, key indices trended higher following positive cue from global equities overnight; with strong gains on China's tech and EV stocks.
Additionally, the meeting between presidents Xi Jinping and Joe Biden has the potential to enhance the fragile relationship between the United States and China, ultimately mitigating the risks associated with geopolitical tensions.
"We remain cautiously optimistic on Bursa Malaysia, fueled by its enticing valuations, increasing trading volume, and continuous support from foreign inflow, although we do not discount the possibility of profit-taking activities.
"Should the benchmark index break through the 1,465 resistance and sustain it for an extended duration, we predict additional upward potential.
"The subsequent resistance is expected in the range of 1,495-1,500, with support remaining at 1,445," added Pak Leng.
