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Bursa Malaysia Soars: KLCI Climbs 12 Points

Bursa Malaysia Closes Higher Amid Positive Regional Market Cues

KUALA LUMPUR: Bursa Malaysia ended the trading day on a positive note, buoyed by encouraging signals from regional stock markets and a resurgence in investor confidence. The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) climbed 12.45 points, or 0.78%, to close at 1,612.34, marking a rebound from the previous session's minor dip. This uptick reflects a broader trend of optimism sweeping through Asian equities, driven by favorable economic data from major economies and easing geopolitical tensions.

Market analysts attribute the day's gains to several key factors. Primarily, positive cues from Wall Street overnight, where major indices like the Dow Jones Industrial Average and the S&P 500 posted modest gains amid reports of stronger-than-expected corporate earnings, set a constructive tone for Asian markets. In the region, Japan's Nikkei 225 surged by 1.2%, while Hong Kong's Hang Seng Index rose 0.9%, fueled by tech sector recoveries and renewed interest in property stocks. Similarly, Singapore's Straits Times Index advanced 0.6%, contributing to the ripple effect that lifted Bursa Malaysia.

Locally, trading volume was robust, with 3.2 billion shares changing hands, valued at RM2.8 billion, indicating heightened participation from both retail and institutional investors. Gainers outnumbered decliners by a ratio of 612 to 458, with 512 counters unchanged, underscoring a broadly positive sentiment across the board. The market breadth suggests that the rally was not confined to blue-chip stocks but extended to mid-cap and small-cap segments as well.

Among the heavyweights, banking stocks led the charge. Maybank, the country's largest lender by market capitalization, rose 0.45 ringgit to RM9.85, supported by expectations of stable interest rates and improving loan growth prospects. Public Bank followed suit, gaining 0.30 ringgit to close at RM4.20, while CIMB Group added 0.25 ringgit to RM6.80. These gains in the financial sector were pivotal, as it accounts for a significant portion of the FBM KLCI's weighting. Analysts from RHB Research noted that the sector's performance is closely tied to Malaysia's economic recovery trajectory, with recent data showing a pickup in consumer spending and export activities.

The plantation sector also shone brightly, benefiting from higher crude palm oil (CPO) prices amid global supply concerns. Kuala Lumpur Kepong (KLK) advanced 0.60 ringgit to RM23.50, while IOI Corporation climbed 0.40 ringgit to RM4.10. This sector's resilience comes against the backdrop of favorable weather patterns in key producing regions and increased demand from biofuel markets in Europe and Asia. On the energy front, Petronas Chemicals Group edged up 0.15 ringgit to RM6.95, reflecting optimism over oil price stability following OPEC's latest production decisions.

Technology counters, often sensitive to global semiconductor trends, contributed to the overall uplift. Malaysian Pacific Industries (MPI) surged 1.20 ringgit to RM32.00, driven by positive developments in the US-China trade relations that could ease supply chain disruptions. Similarly, Inari Amertron gained 0.10 ringgit to RM3.45, as investors bet on continued demand for electronics amid the global digital transformation push.

However, not all sectors shared in the gains. The utilities segment saw some profit-taking, with Tenaga Nasional Berhad (TNB) dipping 0.20 ringgit to RM11.80, possibly due to concerns over rising operational costs linked to fuel price volatility. Construction stocks were mixed, with Gamuda Berhad holding steady at RM5.50, while IJM Corporation slipped marginally by 0.05 ringgit to RM2.45. Market observers suggest that upcoming infrastructure projects under the 12th Malaysia Plan could provide a boost to this sector in the coming quarters.

From a macroeconomic perspective, the positive regional cues align with recent economic indicators pointing to a steady recovery in Southeast Asia. Malaysia's gross domestic product (GDP) growth for the first quarter of 2025 is projected at 4.5%, supported by robust exports and domestic consumption. The ringgit strengthened slightly against the US dollar, trading at 4.25, which helped mitigate imported inflation pressures and enhanced the attractiveness of Malaysian assets to foreign investors.

Foreign fund inflows were evident, with net buying of RM150 million recorded for the day, reversing a brief outflow trend from earlier in the week. This influx is seen as a vote of confidence in Malaysia's market stability, especially as central banks in the region, including Bank Negara Malaysia, maintain a cautious yet accommodative monetary policy stance. The benchmark interest rate remains at 3.00%, providing a supportive environment for equity investments without stoking inflationary fears.

Looking ahead, market participants are eyeing upcoming corporate earnings releases and key economic data, such as inflation figures and trade balances, which could influence sentiment. Analysts from Kenanga Investment Bank anticipate the FBM KLCI to test the 1,620 resistance level in the near term, provided regional positivity persists. However, they caution against potential headwinds, including any escalation in global trade tensions or unexpected shifts in US Federal Reserve policy.

In the broader Asian context, the day's performance on Bursa Malaysia mirrors a synchronized upswing. China's Shanghai Composite Index rose 0.7%, bolstered by government stimulus measures aimed at supporting the property sector and consumer spending. South Korea's Kospi advanced 1.1%, led by gains in technology giants like Samsung Electronics. This regional harmony underscores the interconnectedness of Asian markets, where positive developments in one economy often cascade to others.

Investor sentiment was further lifted by reports of easing inflationary pressures in major economies, reducing the likelihood of aggressive rate hikes. In Malaysia, the consumer price index (CPI) moderated to 2.8% year-on-year in March 2025, providing room for sustained economic expansion. This data, combined with strong corporate balance sheets, has encouraged a shift from defensive to growth-oriented investments.

On the warrants and derivatives front, activity was brisk, with call warrants on key indices seeing increased trading volumes. This indicates that traders are positioning for further upside, albeit with some hedging against volatility. The volatility index for Bursa Malaysia eased to 14.5, signaling reduced market anxiety compared to previous weeks.

In summary, Bursa Malaysia's higher close amid positive regional cues highlights the market's resilience and its alignment with global trends. As investors navigate an evolving economic landscape, the focus remains on sustainable growth drivers such as digital innovation, green energy initiatives, and export competitiveness. With the trading week drawing to a close, the stage is set for continued monitoring of international developments that could shape the market's trajectory in the days ahead. Stakeholders, from individual investors to fund managers, are advised to stay attuned to both local and global indicators to capitalize on emerging opportunities while managing risks effectively. This session's performance not only boosts short-term confidence but also reinforces Malaysia's position as a dynamic player in the Asian financial arena.

Read the Full Free Malaysia Today Article at:
[ https://www.freemalaysiatoday.com/category/business/2025/04/18/bursa-ends-higher-amid-positive-regional-cues/ ]