KUALA LUMPUR: Bursa Malaysia closed higher in tandem with the improving sentiment across the region, analysts said.
Key regional indices trended higher with Hong Kong stocks leading the gain due to strong buying on Xiaomi's shares after the consumer electronics company began taking orders for its newly launched electric vehicle.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 3.97 points, or 0.25 per cent, to 1,547.99 from Monday's close of 1,544.02.
The benchmark index, which opened 0.49 of a point lower at 1,543.53, fluctuated between 1,540.77 and 1,550.99 throughout the trading session.
On the broader market, gainers outpaced losers at 583 to 506, with 446 counters unchanged, 748 untraded, and 13 others suspended.
Turnover rose to 4.15 billion units valued at RM2.81 billion from 3.16 billion units worth RM2.13 billion on Monday.
SPI Asset Management managing director Stephen Innes said after a robust first quarter for risk assets, market bulls are expected to maintain their dominance entering the second quarter, driven by positive data from China.
"Additionally, there's good news for oil prices, which benefits local O&G constituents," he told Business Times.
Expectations for Organisation of the Petroleum Exporting Countries (OPEC) extending its production cut into the second quarter will add further support.
The latest data from the United States, the world's largest economy, revealed a significant development.
The ISM Manufacturing Purchasing Managers' Index (PMI) moved into expansion territory for the first time since late 2022, surpassing expectations with a reading of 50.3, which is very bullish for oil demand and oil prices .
"This unexpected development is ostensibly a boon for Malaysian exports and oil stocks," said Innes.
Rakuten Trade vice president of research Thong Pak Leng said in the commodities market, the Brent crude oil and palm oil futures remained elevated, and he believes this offers opportunity for investors for short term play.
"We maintain our cautiously optimistic stance on the local stock market, driven by enticing valuations, increasing trading volume, and continuous support from local institutions, albeit with an awareness of potential profit-taking activities. "Should the benchmark index break through the 1,557 resistance and sustain it for an extended duration, we predict additional upward potential. "For the moment, we maintain our weekly FBM KLCI target at between 1,527-1,557," he said.-ends-