FBM KLCI maintains rally as risk appetite continues to grow

KUALA LUMPUR: The local benchmark index made a positive start to the weak as investors continued to lean into the narrative of economic growth and easing geopolitical tensions.
Having ended the previous week at a fresh seven-year high, the FBM KLCI started Monday with a 1.64-point gain to 1,721.63.
"The FBM KLCI remains firmly supported by sustained technical momentum and trend indicators, pointing to a likely extension of its upward trajectory in the coming week.
"On the external front, easing geopolitical tensions and improving risk appetite should further bolster sentiment and lend support to the local benchmark," said TA Securities in a note.
However, the research firm cautioned that overbought momentum readings suggest that upside may be limited, with stronger profit-taking pressures likely to emerge following the recent run-up.
Among the blue chips, Hong Leong Bank rose 14 sen to RM24.14, PETRONAS gas gained 10 sen to RM18.68 and MISC climbed seven sen to RM7.95.
Top actives included VS Industry sliding one sen to 45 sen. Capital A rose two sen to 56.5 sen as it officially completed its Practice Note 17 regularisation plan. AirAsia X gained 11 sen to RM1.95
IJM jumped six sen to RM2.70 on news the EPF shored up its stake in the construction firm to over 20%.
Meanwhile, the ringgit breached the 4.00 level against the US dollar to its strongest level in more than seven years as traders' risk appetite for the local currency grew following Bank Negara's decision to keep the overnight policy rate steady.
At 8am, the ringgit strengthened to 3.9850/9950 against the dollar from 4.0045/0080 recorded last Friday.

Sumber : thestar.com.my