Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the optimism was buoyed by softer US payroll data that strengthened expectations of a September interest rate cut.
“Investors stayed upbeat on expectations of a Federal Reserve rate cut of at least 25 basis points at the Sept 16-17 policy meeting, even as attention this week centred on crucial US consumer inflation readings,” he told Bernama.
Thong added that for the local bourse, the benchmark index regained the 1,585 level and is now attempting to reverse the downtrend seen from late 2024 to early 2025.
“However, trading volume has remained relatively subdued, suggesting that while the technical setup is constructive, stronger participation from investors will be essential to sustain momentum and validate the uptrend.
“Hopes are that this emerging uptrend will entice more participants into the market, boosting volume and reinforcing the rally,” he said.
The benchmark index is anticipated to trend within the range of 1,570-1,600 for the week.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) climbed 7.44 points to 1,585.59 from last Thursday’s close of 1,578.15.
The index began the session 3.07 points firmer at 1,581.22, and traded between 1,579.57 and 1,587.16 during the morning session.
In the wider market, gainers beat decliners 548 to 434, while 524 counters were unchanged, with 1,062 untraded and eight suspended.
Turnover declined to 2.15 billion units worth RM1.94 billion from 2.32 billion units worth RM2.3 billion last Thursday.
The local bourse was closed on Friday for the Maulidur Rasul holiday.
Among the heavyweights, Maybank and Public Bank added one sen each to RM10 and RM4.28, respectively.
Tenaga Nasional accumulated 26 sen to RM13.32, IHH Healthcare rose one sen to RM6.92, while CIMB Group decreased three sen to RM7.27.
Pharmaniaga emerged as the most active counter at the close, advancing 1.5 sen to 19.5 sen, followed by NexG and Jaks, which were one sen better at 49 sen and 11 sen respectively. Tanco was 1.5 sen higher at 81 sen, while Velesto improved one sen to 21.5 sen.
Consumer stocks led the broader market, with Nestle increasing by 76 sen to RM94, followed by Petronas Dagangan, which improved by 34 sen to RM22.14, and PPB, which gained 30 sen to RM9.90.
On the index board, the FBM Emas Index rose 46.73 points to 11,762.02, the FBMT 100 Index added 43.08 points to 11,527.24, and the FBM Emas Shariah Index improved 60.03 points to 11,735.55.
The FBM 70 Index climbed 12.74 points to 16,447.45, while the FBM ACE Index was 30.23 points weaker at 4,768.96.
By sector, the financial services index firmed 11.62 points to 18,126.06, the industrial products and services index edged up 1.76 points to 164.75, the plantation index edged up 31.93 points to 7,636.36, while the energy index shed 3.30 points to 740.32.
The Main Market volume inched up to 1.29 billion units valued at RM1.75 billion from 1.24 billion units valued at RM2.09 billion on Thursday.
Warrants turnover declined to 596.79 million units worth RM91.02 million from 723.44 million units worth RM108.28 million previously.
The ACE Market volume narrowed to 262.34 million units worth RM100.3 million from 363.27 million units worth RM96.72 million.
Consumer products and services counters accounted for 208.85 million shares traded on the Main Market, industrial products and services (184.78 million), construction (119.46 million), technology (185.48 million), financial services (62.11 million), property (136.03 million), plantation (27.88 million), REITs (29.2 million), closed/fund (32,100), energy (85.36 million), healthcare (165.16 million), telecommunications and media (22.69 million), transportation and logistics (26.58 million), utilities (32.91 million), and business trusts (156,300).