SPI Asset Management managing director Stephen Innes said the anticipation of a shift in US monetary policy expectations has lifted the local bourse, riding the same global wave that has buoyed most equities across Asia.
“With the US inflation calm and the jobs market showing cracks, the Fed looks set to cut rates as soon as next week. That dovish tide has become the rising swell carrying virtually every market, Malaysia included,” he told Bernama.
Innes added that the short-term outlook is optimistic for Bursa as a softer Fed typically weakens the dollar, which in turn makes ringgit-denominated assets more attractive.
“That flow dynamic is important for global funds, especially at a moment when US equities are trading at stretched valuations. The relative discount of Asean markets offers a natural rotation play, and Malaysia’s index is benefitting from that shift in allocation,” he said.
Bursa will close on Sept 15, which is an additional public holiday in conjunction with Malaysia Day on Sept 16.
It will resume operations on Sept 17.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) jumped 17.28 points to 1,600.13 from Thursday’s close of 1,582.85.
The index opened 5.19 points higher this morning, moved between 1,585.06 and 1,600.04, before settling at its intraday high.
In the broader market, gainers thumped losers 639 to 394, while 494 counters were unchanged, with 1,095 untraded and 11 suspended.
Turnover, however, trimmed to 2.23 billion units worth RM2.10 billion from 2.48 billion units worth RM2.32 billion yesterday.
Elsewhere, at the time of writing, South Korea’s Kospi added 1.35% to 3,389.46 and Japan’s Nikkei 225 perked up 1.05% to 44,838.65 but Hong Kong’s Hang Seng fell 0.43% to 26,086.32, and Singapore Strait Times Index was 0.33% down to 4,341.66.
Among the heavyweights, Maybank advanced 10 sen to RM9.87, Public Bank rose 3 sen to RM4.25, CIMB was 13 sen higher at RM7.37 and Tenaga Nasional advanced 16 sen to RM13.38.
For active stocks, Pharmaniaga was 0.5 sen higher at 25 sen, VS Industry lost 0.5 sen to 54.5 sen, Tanco and Velesto both earned 1.5 sen to 82.5 sen and 23 sen respectively.
Top gainers for the day were led by Nestle, which jumped RM2.40 to RM97.90, Telekom was 71 sen higher at RM7.73, KSL Holdings edged up 50 sen to RM2.47.
Hong Leong Industries and PPB Group were the top losers, dropping 18 sen and 17 sen to RM13.60 and RM9.93 respectively.
On the index board, the FBM 70 Index advanced 75.83 points to 16,544.57, while the FBM ACE Index earned 52.56 points to 4,802.27 and the FBM Emas Shariah Index garnered 114.35 points to 11,890.29.
The FBM Emas Index surged 107.68 points to 11,862.72 and the FBMT 100 Index climbed 107.97 points to 11,623.77.
By sector, the industrial products and services index edged up 0.95 of a point to 165.28, the plantation index gained 13.98 points to 7,699.54, while the financial services index added 115.16 points to 18,068.42 and the energy index advanced 5.37 points to 742.90.
The Main Market volume slipped to 1.34 billion units valued at RM1.87 billion from 1.39 billion units valued at RM2.04 billion yesterday.
Warrants turnover declined to 519.23 million units worth RM83.64 million from 771.31 million units worth RM135.34 million previously.
The ACE Market volume rose to 369.5 million worth RM143.0 million from 314.81 million worth RM141.82 million.
Consumer products and services counters accounted for 209.00 million shares traded on the Main Market, industrial products and services (232.11 million), construction (109.18 million), technology (162.90 million), financial services (52.79 million), property (161.81 million), plantation (28.66 million), REITs (23.46 million), closed/fund (546,800), energy (129.37 million), healthcare (109.59 million), telecommunications and media (38.23 million), transportation and logistics (33.90 million), utilities (44.22 million), and business trusts (13,600).