FBM KLCI rallies past 1,600 as Fed affirms probability of Sept rate cut

KUALA LUMPUR: The FBM KLCI rode the bullish sentiment past the critical 1,600 mark as global equities were spurred on by recent remarks made at weekend Federal Reserve summit, which reinforced the likelihood of a US rate cut.
The Dow Jones Industrial Average surged 800 points to a record high last Friday following Fed chair Jerome Powell's speech that suggested the lending rate may be lowered as early as September.
As the Malaysian market reopened on Monday, investors flocked into equities with renewed enthusiasm, taking the FBM KLCI 5.35 points higher to RM1,602.82.
TA Securities said the positive readings on the trend and momentum indicators for the FBM KLCI following the previous week's rebound bodes well for further upside in the immediat term.
However, the research firm cautioned that the daily stochastic indicators, which are a short-term momentum measure, are deeply embedded in overbought territory and are "likely to signal a potential short-term correction this week".
"Immediate support remains at the 50%FR (1,527) with stronger supports seen at the 38.2%FR (1,490) and the 23.6%FR (1,444). Immediate resistance
is kept at 1,610, the 76.4%FR, with next upside hurdle at the December 2024 high of 1,644, followed by stronger resistance at 1,684," it said in its market commentary.
Among the early risers, MPI jumped RM1.04 to RM26.06, Nestle rose 94 sen to RM92.08 and United Plantations added 26 sen to RM22.26.
Meanwhile, top actives included Magma down 3.5 sen to 27.5 sen, Oxford Innotech dropping two sen to 44.5 sen and L&G gaining 0.5 sen to 12 sen.

Sumber : thestar.com.my