FBM KLCI lifted by developments in US-China trade, Fed rate bets

KUALA LUMPUR: The FBM KLCI gapped up in opening trade as Asian traders grew increasingly optimistic over a rate cut by the Federal Reserve in November, as well as progress in US-China trade talks.
While most of Asian welcomed the weekend developments, Japan's Nikkei 225 jumped past the 50,000 mark for the first time, ahead of a meeting between newly appointed prime minister Sanae Takaichi and US President Donald Trump.
At its Monday open, the Malaysian benchmark index rose 6.84 points above the short-term moving averages to 1,620.11.
Bank stocks rallied with Maybank rising five sen to RM9.95, CIMB climbing eight sen to RM7.45 and Public Bank adding three sen to RM4.25.
TA Securities noted, however, that the technical momentum and trend indicators pointed to a potential drift into a range-bound pattern.
"In the absence of fresh domestic catalysts, the local bourse is likely to remain in consolidation mode as investors adopt a wait-and-see stance ahead of key trade discussions between Washington and Beijing taking place this week.
"Nevertheless, rising optimism over a possible interest rate cut by the US Federal Reserve in September could help mitigate downside risks and offer a modest boost to investor sentiment in the week ahead," it said in its outlook.
"As for the index, immediate support is pegged at the 61.8%FR (1,564) with stronger supports seen at the 50%FR (1,527) followed by the 38.2%FR (1,490). Immediate resistance remains capped at the December 2024 high
of 1,644, with the highs of 1,684, and 1,695 as tougher upside hurdles."
Making its debut on the ACE Market, Insight Analytics' share price more than doubled to 69 sen from its 33 sen a share initial public offering price.
The share was the top traded with 84 million shares changing hands.
Other leading actives included TWL up 0.5 sen to three sen and Perak Transit gaining 1.5 sen to 35 sen.

Sumber : thestar.com.my