Bursa Malaysia ends higher as blue-chip bargain hunting lifts KLCI

Bursa Malaysia closed higher on Monday, propelled by bargain hunting in selected blue chips as tensions in the West Asia conflict eased due to falling oil prices. The FTSE Bursa Malaysia KLCI index surged 1.38 points, or 0.08%, to 1,666.94, from the previous close of 1,665.56. The trading session witnessed a positive market breadth, with gainers surpassing decliners 654 to 552.

A total of 517 counters remained unchanged, while 1,159 remained untraded and 20 were suspended. Turnover contracted to 3.41 billion units, valued at RM2.8 billion, compared to 4.91 billion units valued at RM4.87 billion the previous day. Kenneth Leong, head of research at Berjaya Research Sdn Bhd, anticipates the FBM KLCI to stabilize, with further gains likely to be modest amidst persistent external uncertainties, including elevated US bond yields, ongoing West Asia tensions, and expectations of additional US Federal Reserve tightening.

Technical analysis suggests the index has formed a bullish candlestick pattern, but could potentially enter a consolidation phase. The immediate resistance levels are at 1,687 points and 1,700 points, while support levels are now at 1,655 points and 1,650 points. Rakuten Trade Sdn Bhd’s vice-president of equity research, Thong Pak Leng, believes the recent correction could encourage selective bargain hunting, though the lack of fresh domestic catalysts and continued concerns over elevated US Treasury yields may limit the sustainability of any near-term recovery.

Investors are expected to remain selective and monitor developments surrounding the US-China summit, crude oil prices, and US Treasury yields. Maybank, Public Bank, and CIMB all gained, while Tenaga Nasional and IHH Healthcare remained unchanged. Among the top gainers were Hengyuan Refining, Samaiden, and Hong Leong Bank, while Malaysian Pacific Industries, Time Dotcom, and Sunway Construction were among the top losers.

Sector-wise, the Financial Services Index rose 78.83 points to 19,491.46, while the Plantation Index fell 85.95 points to 9,410.49. Main Market volume decreased to 1.70 billion units worth RM2.18 billion, compared to 3.49 billion units valued at RM4.55 billion on Friday.