KUALA LUMPUR: Bursa Malaysia sustained upward momentum at midday break, driven by increased buying in specific heavyweight stocks, particularly in the utilities sector.
As of 12:30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 0.55 percent or 8.18 points to 1,495.79, compared to Friday's closing of 1,487.61.
The benchmark index opened 0.99 points higher at 1,488.60 and fluctuated between 1,488.60 and 1,496.89 during the morning session.
In the broader market, gainers outnumbered decliners with 635 to 401, while 394 counters remained unchanged.
Total turnover reached 4.32 billion units valued at RM2.17 billion.
Malacca Securities Sdn Bhd said the FBM KLCI experienced a solid start for 2024, with decent buying interest from foreign funds into the local stock exchange."However, the US stock markets traded on a flattish tone on Friday amid a mixed set of data where the robust jobs data was offset by the softer ISM services PMI and snapped the 9-week winning streak as the 10-year US Treasury yield spiked above 4.00 per cent.
"The market was unsure and had contrasting views on when the interest rate cuts may begin. This week, consumer price index and producer price index data will be watched closely to determine the interest rates direction," it said in a note today.
Malacca Securities expects buying support to pause this week following a robust upward movement in the previous week.
"On the commodity market, Brent oil price ended higher on Friday amid rising geopolitical tension in the Middle East and Red Sea regions," it said.
They highlighted that while profit-taking activities might occur in the overall market, trading interest is expected to persist in specific sectors like technology, particularly noteworthy as the sector recently experienced a breakout after forming a flag pattern last week."We still like the Johor-theme with the KL-SG HSR to be potentially restarting after the request for information deadline by January 15; benefiting the property, construction, building material and utilities sectors.
"Meanwhile, the disruption of shipping and logistics following the Red Sea attack may provide upside potential for the transportation sector," said Malacca Securities.
YTL Power International saw a gain of 18 sen, reaching RM3.40, while YTL Corporation rose by six sen to RM2.28. Together, these stocks lifted the composite index by a combined 3.50 points.