KLCI opens higher after US stock indices notched record closing highs

KLCI opens higher after US stock indices notched record closing highs
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KUALA LUMPUR (Nov 2): Bursa Malaysia rebounded from Monday's (Nov 1) losses to open higher on Tuesday, taking its cue from the overnight Wall Street performance which hovered around record highs on optimism about corporate earnings.

Investors also awaited the latest responses by central banks to months of above-target inflation, dealers said.

At 9.05am, the benchmark FBM KLCI had risen 6.79 points to 1,537.71 from Monday's close at 1,530.92.

It opened 1.29 points higher at 1,532.21.

On the broader market, gainers led losers 229 to 149, while 249 counters were unchanged, 1,648 untraded and 15 others suspended.

Turnover amounted to 222.85 million units worth RM232.89 million.

In a research note, Malacca Securities Sdn Bhd said following the strong hammered-down situation on the local front, sentiment is expected to remain negative over the near term without any significant positive fresh leads in the market.

"Nevertheless, with Wall Street still under the upward trending tone, buying interest might spill over to technology stocks on the local front.

"Still, we expect mild bargain-hunting activities to emerge once the market is able to look beyond the prosperity tax and stamp duty on contract notes going forward," it said.

Commodity-wise, crude palm oil prices were hovering below the RM5,000 level, while crude oil prices were mildly higher.

As such, it said for stocks to watch, technology could be a sweet spot, given the earnings certainty going forward.

"Also, we expect traders to look out for recovery-themed stocks under the tourism and consumer sectors, while Ta Win Holdings Bhd, having secured a RM2.5 billion contract from South Korea’s POSCO, may spur trading interest within the metal-related sector,” it added.

Among the heavyweights, Malayan Banking Bhd (Maybank) and Petronas Chemicals Group Bhd (PetChem) added five sen each to RM8.04 and RM8.40 respectively, Public Bank Bhd improved two sen to RM4.06, Tenaga Nasional Bhd (TNB) gained six sen to RM9.66 and IHH Healthcare Bhd was flat at RM6.48.

Of the actives, Ta Win bagged one sen to 16.5 sen, TA Win's warrant edged up half a sen to seven sen and YBS International Bhd rose 3.5 sen to 57.5 sen, while MMAG Holdings Bhd eased half a sen to 10 sen and Top Builders Capital Bhd slid 2.5 sen to three sen.

On the index board, the FBM Emas Index increased 47.58 points to 11,377.75, the FBMT 100 Index rose 43.42 points to 11,002.92, the FBM 70 went up 39.16 points to 15,008.95, the FBM Emas Shariah Index advanced 43.58 points to 12,409.65 and the FBM ACE improved 5.26 points to 7,055.49.

Sector-wise, the Industrial Products and Services Index edged up 0.98 of a point to 203.12, the Plantation Index climbed 14.94 points to 6,728.35 and the Financial Services Index advanced 87.61 points to 15,244.88.