Bursa Malaysia opens higher on positive Wall Street momentum

Bursa Malaysia began trading higher on Tuesday, mirroring the bullish sentiment on Wall Street the previous evening. The FTSE Bursa Malaysia KLCI (FBM KLCI) increased 7.14 points, or 0.44%, to 1,638.89, up from Monday's closing figure of 1,631.75. Throughout the morning, the index remained above 1,636.38. On a broader scale, 272 stocks outperformed 202 in gains, with 364 remaining unchanged, 1,944 shares untraded, and 13 suspended.

The overall trading volume amounted to 440.19 million shares valued at RM164.76 million. Wall Street's positive performance, with gains of 0.2%, 0.7%, and 1.1% for the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite respectively, contributed to Bursa Malaysia's upward trajectory. The Brent crude oil price stabilized at US$100.3 per barrel, while the 10-year Treasury yield hovered at 5.3%.

Analysts anticipate cautious investor behavior ahead of the Budget 2027 announcement, with key sectors to watch including mechanical and electrical industries, AI infrastructure, Tenaga Nasional Bhd's National Grid Backbone project, and potential benefits from non-revenue water reduction initiatives. Rakuten Trade Sdn Bhd's equity research head forecasts the index to fluctuate between 1,630 and 1,640, potentially offering opportunities for bargain hunters.

Major stocks that saw gains included Maybank, Tenaga Nasional, CIMB, IHH Healthcare, and Public Bank. Among the top gainers were Batu Kawan, Nestle, Kuala Lumpur Kepong, and Petronas Dagangan, while HeiTech Padu led the decline. Sector-wise, the Financial Services Index demonstrated the most significant increase at 56.47 points.