KUALA LUMPUR: Bursa Malaysia continued its upward trend, opening slightly higher today, buoyed by positive market sentiments with Wall Street reaching record highs.
As of 9:05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) showed an increase of 1.04 points, reaching 1,492.23, in contrast to the previous day's closing figure of 1,491.19.
The benchmark index started the day with a 1.37-point improvement, opening at 1,492.56.
Market dynamics were favourable, with advancers surpassing decliners at 157 to 112.
Meanwhile, 240 counters remained unchanged.
The total turnover for the session reached 182.68 million units, valued at RM76.33 million.
Rakuten Trade's vice president of research Thong Pak Leng is hopeful that the index can break the 1,500 level decisively soon in order to maintain the upward trajectory.
"For today, we believe the index will hover within the 1,490-1,500 range taking the positive cue from Wall Street," he said.
Hong Leong Investment Bank Bhd (HLIB Research) noted that the positive market breadth for the second consecutive session (1.72 compared to 1.78 the previous day) is a result of increased bargain-hunting activities, particularly on stocks perceived as fundamentally and institutionally appealing.
According to HLIB research, this surge is a response to the fallout from the decline in 'warehoused' stocks, mainly small caps and ACE companies.
Moreover, foreign investors continued to play a significant role as key net buyers for the second consecutive day, injecting an additional RM128 million into the market.
"In contrast, local institutions were net sellers, experiencing a decrease of RM77 million (totaling RM101 million for January), and local investors also witnessed a decline of RM51 million (totaling RM595 million as of January 24).
"We remain optimistic about the KLCI's upward momentum, rebounding from a weekly low of 1,477 and securing a second consecutive gain, positioning itself above the key Moving Averages (MAs)."If the index successfully breaks out above 1,504 (the 17-month high), it has the potential to reach levels between 1,512 and 1,528 in the next move. Key support zones are identified at 1,453, 1,463, and 1,477," HLIB research added.