Bursa rallies with Asian peers as US jobs data affirms Sept rate cut

KUALA LUMPUR: The FBM KLCI opened on a rising tilt as Asian stocks rallied on the growing likelihood the US Federal Reserve will cut interest rates at its next meeting.
Analysts warned of stagflation in the US economy following a dismal jobs report over the weekend that saw a jump in unemployment figures, which has all but sealed the case for a lending rate cut.
In line with the regional rally, the Malaysian stock index gained 3.07 points to 1,581.22 on Monday with most bank stocks adding weight.
TA Securities said the growing optimism over a potential interest rate cut by the US central bank in September may help to cushion downside risks and provide a modest uplift to investor confidence in the week ahead.
However, it added the market is likely to remain in consolidation mode as investors adopt a wait-and-see approach in the absence of fresh domestic catalysts.
"Immediate support stays intact 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 remains at 1,610, the 76.4%FR, with next major resistance at
the December 2024 high of 1,644, followed by stronger resistance at 1,684," it said in a market commentary.
Meanwhile, Rakuten Trade said most research houses have remained calm and expect the FBM KLCI to trend between 1,620-1,690 by end-2025 despite aknowledging decent results from the recently concluded earnings season.
"For today, we believe the KLCI to play catch up following a strong regional performance last Friday thus anticipate the index to hover within the 1,580-1,595 range," it added in a note.
Early price movers included Tenaga Nasional up 12 sen to RM13.18, PETRONAS Dagangan gaining 12 sne to RM21.92 and PETRONAS Gas rising six sen to RM18.76.
Maybank added one sen to RM10, Public Bank climbed two sen to RM4.29 and RHB led three sen to RM6.53.
Of actives, JAKS rose 0.5 sen to 10.5 sen, NexG gained one sen to 49 sen and Velesto added 0.5 sen to 21 sen.

Sumber : thestar.com.my