KUALA LUMPUR: Bursa Malaysia bucked the regional trend to end higher today, buoyed by a resurgence of interest in healthcare stocks, notably in glove counters.
Tradeview Capital fund manager Neoh Jia Man said this contrasts with the subdued performance of regional markets, which were hampered by a persistent decline in North Asian markets.
"While we think that the support from the rally in glove counters may be short-lived, we maintain the view that the market is poised to end the year on a stronger note, driven in part by window-dressing activities," he told Business Times.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 2.83 points to 1,465.28 from Friday's close of 1,462.45.
The barometer index opened 0.89 of-a-point lower at 1,461.56 and moved between 1,460.42 and 1,468.74 throughout the day.
However, the broader market was slightly negative as losers surpassed gainers 459 to 373, while 546 counters were unchanged, 942 untraded, and 27 others suspended.
Turnover rose to 4.81 billion units worth RM3.02 billion from 3.77 billion units worth RM3.40 billion last Friday.
SPI Asset Management managing director Stephen Innes said the FBM KLCI seems to be bucking the regional trend that is getting negativity influenced by key Federal Reserve (Fed) lieutenants Goolsbee and Williams suggesting March is too early for Fed rate cuts.
"Locally investors remained bouyed by last week's China stimulus effort which should help local exporters with hope the Chinese economy is turning the corner. "However gains have been limited by slightly higher US 10 year yields after the Fed rate cut pushback," said Innes.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the local bourse continued to trend higher with buying focused mainly on energy, banks, and commodity-related stocks.
Meanwhile, key regional indices finished mostly lower due to profit-taking activities following the recent rally.
On the other hand, investors are cautiously monitoring hints of a change to Japan's central bank's long standing near-zero interest rate policy, he said.
"Back home, our view on the local stock market remains cautiously optimistic, driven by its enticing valuations, rising trading volume, and consistent support from foreign inflow, although we acknowledge the possibility of profit-taking activities," said Thong.
The benchmark index has once again tested the 1,465 resistance level.
"Should the FBM KLCI be able to break and hold above the 1,465 resistance for an extended period, we anticipate additional upward potential.
"We foresee the benchmark index trending within the range of 1,455-1,475 for the week, with the next resistance level at 1,500 and support at 1,450," said Thong.