KUALA LUMPUR: Bursa Malaysia saw an upward trend in early trade, with the main index maintaining above the 1,500 level amid positive global market sentiment.
The FTSE Bursa Malaysia KLCI (FBM KLCI) increased by 0.66 points to reach 1,504.76 at 9.05am, from the previous day's closing at 1,504.1.
The benchmark index initially opened slightly lower by 0.65 points at 1,503.45.
In the broader market, gainers outnumbered losers with a count of 221 to 135, while 284 counters remained unchanged, 1,657 were untraded, and 49 were suspended.
The total turnover was 296.45 million units valued at RM156.16 million.
Hong Leong Investment Bank Bhd said the FBM KLCI extended its positive trend for the fourth day in a row, increasing by 8.0 points to 1,504.1 yesterday.
This uptrend was in response to the People's Bank of China's surprising decision to cut the reserve requirement ratio by 50 basis points.
"This was driven by ongoing bargain-hunting activities on selected blue-chip stocks after concerns about a domino effect triggered by the meltdown in perceived "warehoused" stocks eased.
"Foreign investors returned as net buyers, contributing RM170 million (January: RM598 million), while local institutions were net sellers with a decrease of RM104 million (January: RM18 million), and local investors sold a net amount of RM66 million (Jan 24: RM616 million)," HLIB said in a note today.
HLIB maintains its positive outlook, anticipating the FBM KLCI's upward momentum from its Jan 2 low of 1,446 to persist, especially after reaching a 17-month high at 1,504 and remaining above crucial moving averages.
"A successful breach beyond 1,504 could propel the index further towards the 1,512-1,528 range. Key support levels are identified within the 1,465-1,482 zones.
"This optimism is supported by regulators affirming the solid fundamentals of Bursa Malaysia, recent positive domestic developments, and an increasing risk appetite for the relatively under owned Bursa Malaysia, with foreign shareholding at an all-time low of 19.5 per cent in December 2023," it added.