Stock market in Bursa witnesses reversal, aligning with assorted international signals
FTSE Bursa Malaysia KLCI (FBM KLCI) Maintains Cautious Stability Amid Mixed Performance
The FTSE Bursa Malaysia KLCI (FBM KLCI) has shown mixed but generally positive performance in recent days, with notable volatility. On July 25, the index closed at 1,535.73, erasing some gains after opening slightly lower at 1,538.66.
On July 24, the FBM KLCI closed at an intra-day high near 1,540 points for the second consecutive session, indicating regained investor risk appetite and strength in blue-chip stocks. However, the index opened slightly lower on July 25, reflecting some cautiousness among investors.
Earlier in the month, the index had rallied steadily, reaching a five-week high of 1,541.53 on July 1 due to sustained foreign buying, improving investor sentiment, and supportive macroeconomic factors. By mid-July, the index opened above 1,520 points, buoyed by positive Wall Street cues and local institutional stock accumulation, but then showed some cautiousness with flat or slightly negative movement.
Expected Trends for July 27
Given this recent performance context and investor sentiment, the FBM KLCI is expected to maintain a cautious but stable range around the 1,530 to 1,540 level. This could be influenced by continued foreign interest and institutional buying if macroeconomic data remains supportive, sensitivity to global market cues, especially U.S. interest rates and regional market performance, and potential volatility depending on any new domestic developments or global catalysts.
Other Market Highlights
- The FBM Emas Index erased 30.76 points to 11,520.41, while the FBM ACE Index added 0.88 of a point to 4,643.39. The Energy Index rose 1.17 points to 739.85, and the Industrial Products and Services Index slipped 0.41 of a point to 157.75.
- Maybank closed at RM9.61, losing two sen, and Tenaga Nasional closed at RM13.76, reducing 18 sen. However, NexG advanced one sen to 52.5 sen, and Green Packet added half-a-sen to five sen. IHH Healthcare closed at RM6.68, earning three sen, and Public Bank closed at RM4.31, remaining unchanged.
- Lotte Chemicals was one sen lower at 69.5 sen, and CIMB closed at RM6.69, decreasing one sen. TWL, Pharmaniaga, and SFP Tech remained unchanged at 2.5 sen, 22 sen, and 20 sen, respectively.
- The turnover for the FBM KLCI stood at 214.97 million shares valued at RM113.71 million.
International Markets
- Sentiment in Hong Kong remains buoyant due to the US appearing more forthcoming in negotiations amid ongoing trade tension. Many are hoping a deal may be agreed between the US and the EU soon. This performance might be due to institutional support in view of the upcoming results season. The Hang Seng Index in Hong Kong continues its winning streak, staying within the 25,700 mark.
- Wall Street closed mixed, with the Dow Jones Industrial Average ending lower due to a sell-off on IBM.
In summary, the FBM KLCI is currently fluctuating near recent highs with underlying positive momentum, but investors are cautious, so moderate gains or sideways movement are anticipated unless strong new drivers emerge. The overall market trend remains positive, with investors keeping a close eye on global and domestic developments.
- Investors in Malaysia's stock-market, specifically in companies like Maybank, Tenaga Nasional, NexG, Green Packet, IHH Healthcare, Public Bank, Lotte Chemicals, CIMB, TWL, Pharmaniaga, and SFP Tech, should be aware of the cautious yet stable range that the FBM KLCI is expected to maintain around 1,530 to 1,540 level.
- As the FBM KLCI is influenced by various factors such as foreign interest, institutional buying, macroeconomic data, global market cues, domestic developments, and global catalysts, it is essential for those interested in investing in Malaysia's finance and business sectors to keep a close eye on these elements.
- While the FBM KLCI is currently exhibiting positive momentum, it is advisable to remain cautious, given occasional volatility, and focus on prudent investing strategies to achieve long-term health and growth in the Malaysian stock-market.
