KUALA LUMPUR: The FBM KLCI has returned to a positive mood following Wall Street’s bullish Friday closing, buoyed by growing expectations of lower lending costs.
According to Apex Securities Research, Wall Street closed higher last Friday with the Dow Jones and S&P 500 indices breaking record high levels, despite hotter than expected producer price index data as investors bets on Federal Reserve cut rates in September.
Investor sentiment on Monday remains solid as US futures have remained positive despite the shock of an assassination attempt on presidential candidate Donald Trump over the weekend. According to pundits, the attempt on Trump’s life has boosted his chances of winning another presidential term.
Apex Securities said key events this week are China’s economic data, a speech by the Federal Reserve chairman, US retail sales and the ongoing earnings season on Wall Street.
“Back home, we anticipate that technology and utilities sectors will continue to be the preferred choice for foreign funds, riding on the data centers and AI developments.
“Meanwhile, renewable energy-related stocks are expected to experience some volatility due to the increased odds of Trump’s re-election, given his unfavorable stance on renewable energy development,” said the research firm in a note.
At the opening bell, the FBM KLCI was up 0.8 points to 1,619.86 with leading gainers including Maybank up two sen to RM10.06, YTL Power gaining three sen to RM4.98 and Sunway rising two sen to RM4.12.
Of actives, Ekovest lost one sen to 49.5 sen, Aimflex gained 0.5 sen to 21 sen and Kanger was flat at 5.5 sen.
-TheStar