Stock exchange in Bursa Malaysia rises at the start, anticipating the upcoming decision on US interest rates
Bursa Malaysia started the week on a positive note, with the stock market showing a strong trading volume associated with announcements of significant investments in China by WF Holding Ltd.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) opened at 1,601.29 points. The FBM KLCI gained 1.16 points from its last Friday's close of 1,600.13.
The Industrial Products and Services Index increased by 1.37 points, the Plantation Index advanced by 17.88 points, the Financial Services Index rose by 51.73 points, and the Energy Index climbed 6.38 points. The FBM Emas Index improved by 27.45 points, the FBMT 100 Index gained 23.63 points, the FBM Emas Shariah Index rose by 16.62 points, the FBM 70 Index surged 100.90 points, and the FBM ACE Index added 14.73 points.
Maybank remained at RM9.87, Public Bank added one sen to RM4.26, CIMB gained nine sen to RM7.46, and IHH jumped 13 sen to RM7.38. Tenaga fell eight sen to RM13.30. Pharmaniaga and Bumi Armada increased half a sen each, Notion gained four sen, and JCY put on two sen. VS Industry decreased 1.5 sen.
Last Friday, the FBM KLCI surged to reach the 1,600 level, attributed to last-minute buying ahead of a long weekend. However, US stocks closed lower as traders locked in profits ahead of the FOMC's interest rate decision and a statement by Federal Reserve chair Jerome Powell on future policy direction.
The FOMC meeting is anticipated later tonight, with growing expectations of interest rate cuts. Kenny Yee Shen Pin, head of research at Rakuten Trade Sdn Bhd, expects the FBM KLCI to remain within a stable trading range, hovering within the 1,595-1,610 range today. Another 1,863 counters were untraded and seven were suspended.
Interest in the market is centered on the talks between US President Donald Trump and Chinese President Xi Jinping, with a focus on TikTok. The exchange and its subsidiaries were closed on Sept 15 due to Malaysia Day. The turnover stood at 173.30 million shares worth RM150.38 million.
On the local front, Rakuten Trade Sdn Bhd head of research Kenny Yee Shen Pin expects the FBM KLCI to hover within the 1,595-1,610 range today. Pharmaniaga, Bumi Armada, Notion, JCY, and VS Industry were among the active counters on Monday. The market breadth was positive with 286 gainers, 152 decliners, and 317 unchanged counters.
