KUALA LUMPUR: Bursa Malaysia’s benchmark index could see a potential recovery to reach the psychological level of 1,400, driven by the increasing bullish sentiment in the market amidst slower global inflation data. This positive outlook is also benefiting the lower liners through rotational play, according to Malacca Securities Research.
In a note, the research firm stated, “Investors are anticipating softer US inflation data, which suggests that the monetary tightening cycle may be approaching its peak and is favorable for the equities market. Additionally, the upcoming release of US corporate earnings reports will be closely watched.”
However, TA Securities Research adopts a more cautious tone. “Although key blue chips may experience mild bargain hunting and gain further ground due to improving regional sentiment and hopes for additional stimulus from China to support growth, we expect the broader market to trade sideways due to a lack of positive domestic leads,” the firm noted in its review.
At the opening bell, the FBM KLCI witnessed a decline of 1.19 points to reach 1,390.27, as the market found itself torn between the upward momentum of the recent rally and profit-taking pressures.
Several stocks made gains at the start of the trading session, including Press Metal, rising five sen to RM4.85, Sime Darby Plantation, gaining seven sen to RM4.45, and Hong Leong Bank climbing 12 sen to RM19.02.
In the broader market, Quality Concrete surged 29 sen to 89 sen, while Unisem rose five sen to RM3.08 and Greatec gained four sen to RM4.42, catching the attention of investors.
Notable active stocks include a 0.5 sen decline in RGB to 33.5 sen, a 0.5 sen increase in SCIB to 49 sen, and an unchanged value of Tanco at 52.5 sen.
Credit: The Star : Business Feed
