FBM KLCI opens higher on cautious optimism ahead of key economic data releases

KUALA LUMPUR: The FBM KLCI started the week higher in early trade on Monday, buoyed by cautious optimism ahead of Malaysia's economic data releases, including employment and GDP figures, this week.
The FBM KLCI rose 1.27 points, or 0.08% to 1,558.25 at 9.21 am. The benchmark index opened 0.76 of a point higher at 1,557.74 earlier.
Berjaya Research Sdn Bhd said the improving near-term market conditions could continue to encourage further gains ahead for the FBM KLCI .
Economically, the research house said investors will be keeping a close watch on Malaysia's unemployment rate, which is scheduled to be released later today.
With the unemployment rate hovering at 3.0% in May -- the lowest reading since April 2015 -- it expects the figure to remain relatively unchanged.
"Hence, the strong labour market may continue to anchor private consumption, which has been the key driver of Malaysia's economic growth in recent quarters," it said.
Technically, with the recent immediate resistance at 1,550 points breached, the local bourse is poised to advance towards the next resistance levels at 1,566 points, followed by 1,570 points.
"On the downside, immediate support is pegged at 1,533 points, followed by 1,525 points," it said.
Meanwhile, Rakuten Trade noted that buying has been broad-based, but once again mainly focused on laggards.
"Despite the positive index performance, daily volume remained less than desirable at around 2.49 billion shares.
"For today, we expect the index to trend within the 1,550-1,560 range," it said.
Among the gainers on Bursa Malaysia, Malaysian Pacific Industries rose 38 sen to RM20.62, Heineken added 24 sen to RM23.66, Allianz advanced 10 sen to RM17.42 and United Plantations climbed 12 sen to RM21.90.
On the other hand, Tenaga slid 12 sen to RM13.68, PIE fell 11 sen to RM3.74, PPB Group gave up seven sen to RM9.05 and Kuala Lumpur Kepong declined six sen to RM19.16.

Sumber : thestar.com.my