Bursa Malaysia Opens Higher After Mixed Wall Street Performance

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia opened higher today after the mixed overnight performance on Wall Street. 

United States (US) stocks were mixed despite the growing positive sentiment on expectation that the next US Federal Reserve (Fed) rate cut would only be in September, as investors reduced their exposure on technology stocks ahead of major earnings reports this week.

At 9.10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.77 points to 1,615.71 from yesterday's close of 1,611.94. The index opened 1.39 points higher at 1,613.33. 

On the broader market, losers pipped gainers 178 to 175, with 304 counters unchanged, 1,792 untraded and 54 suspended.

Turnover stood at 271.28 million units worth RM110.21 million.

Malacca Securities Sdn Bhd said the two-day Federal Open Market Committee meeting and the sentiment on the upcoming US election are the key focuses in the near term and may create high volatility in the markets.

The brokerage firm said given that investors in the US markets were locking in profits in the technology sector, this may spill over to stocks on the local front.

“Also, the selldown may be widespread towards the data centre theme that has rallied in the first half of 2024.

“Nevertheless, there might be decent buy-on-dip opportunities if the domestic corporate earnings season in August disappoints, as we think the revenue and earnings will only materialise by 2025,” it added. 

Malacca Securities said it still favours Sarawak-related stocks as well as selected construction, property, consumer and water-related stocks.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI continued with its slide at the closing on Tuesday as sellers came out in droves during the afternoon session.

“Though we believe trading to remain lacklustre ahead of the Fed meeting later today, we reckon some bargain-hunting activities may emerge to lend support for the local bourse.

“Thus we expect the index to trend in the 1,610-1,620 range today,” he told Bernama. 

Meanwhile, Public Investment Bank Bhd (PIVB) said no one expects the Fed to announce an interest rate cut on Wednesday, but the widespread expectation is that it will do so at its next meeting in September.

“Expectations for a soon-to-be-easier Fed have sent yields tumbling in the bond market, and they eased further Tuesday.

“The yield on the 10-year Treasury fell to 4.14 per cent from 4.17 per cent late Monday and from 4.70 per cent in April,” it said. 

According to PIVB, stock markets elsewhere across Asia and Europe were mixed ahead of decisions by central banks there that could shake things up.

Among the heavyweights, Maybank and CIMB Group increased 4.0 sen each to RM10.12 and RM7.25, respectively, Tenaga Nasional added 2.0 sen to RM14.12, and Public Bank and IHH Healthcare gained 1.0 sen each to RM4.19 and RM6.23, respectively. 

Of the actives, Velocity Capital Partner inched up half-a-sen to eight sen, Betamek rose 4.0 sen to 46 sen, Top Glove slid 6.0 sen to RM1.03, Asdion trimmed half-a-sen to 4.5 sen, and Hubline was flat at 12.5 sen.

On the index board, the FBM Emas Index went up 6.40 points to 12,475.10 and the FBMT 100 Index improved 4.23 points to 12,064.27.

However, the FBM Emas Shariah Index slipped 10.78 points to 12,770.82, the FBM 70 Index declined 80.98 points to 18,524.04, and the FBM ACE Index trimmed 7.50 points to 5,660.67.

Sector-wise, the Financial Services Index ticked up 32.63 points to 17,988.06 and the Plantation Index firmed by 26.49 points to 7,195.54.

In contrast, the Healthcare Index shrank 33.55 points to 2,052.98 and the Construction Index eased 0.09 of-a-point to 304.66.

-- BERNAMA