KUALA LUMPUR: Bursa Malaysia ended morning trade higher after the FBM KLCI briefly revisited the 1,500 level driven by ongoing buying support in major stocks, particularly in the banking sector.
Bank Negara Malaysia is set to release its monetary policy statement on the overnight policy rate tomorrow.
At 12:30 pm, the FBM KLCI climbed 6.16 points to 1,497.35, compared to Monday's close at 1,491.19.
The index fluctuated between 1,490.2 and 1,500.39 during the session.
Market dynamics remained positive, with gainers outnumbering losers at 488 to 404.
Turnover reached 2.92 billion units valued at RM1.66 billion, while 419 counters remained unchanged.
Malacca Securities Sdn Bhd said the FBM KLCI has extended its rebound for the second successive session.
This upturn was fueled by purchasing activity in specific prominent stocks within the banking and utilities sectors, in response to the earlier decline in small-cap and lower liner stocks that commenced two weeks ago.
"Concurrently, the US stock markets is poised for another rally as the US 10-year Treasury yield declined ahead of crucial economic data, including US GDP, core PCE Index, and US PMI; the Dow closed above 38k for the first time."With the positive momentum on Wall Street, it is anticipated that buying interest will persist in the local market," it added.
According to Malacca Securities, in the commodity markets, the price of Brent oil rose significantly, nearing the US$80 per barrel (/bbl) threshold following a drone attack on a Russian port in the Baltic Sea.
"Following the Wall Street rally, we expect buying support to prevail on the local front, especially the technology sector. "Additionally, we observed robust trading activities amid the sustained strength in the US market," it said.
Malacca Securities anticipates a surge in buying interest on the local exchange, particularly within the construction, property, and utilities sectors."
This aligns with the current catalysts, including the potential revival of Kuala Lumpur-Singapore High Speed Rail (KL-SG HSR), relaxed Malaysia My Second Home (MM2H) requirements, and the emphasis on investments in the Johor region," it noted.
Malacca Securities also foresee a positive impact on the telco sector due to the increased demand for data centres.