KUALA LUMPUR: Bursa Malaysia sustained its momentum into the afternoon session and closed near the day's high, analysts said.

At 5 pm, the FBM KLCI edged up 0.49 per cent to 1,597.39 against Friday's close of 1,589.59.

The benchmark index, which opened 2.21 points higher at 1,591.80, moved between 1,591.17 and reached 1,598.26 during the afternoon session.

On the broader market, gainers outpaced decliners 657 to 447 while 499 counters were unchanged, 712 untraded and 16 others suspended.

Tradeview Capital fund manager Neoh Jia Man said most sectors were doing well with utilities, property, and transportation counters leading the way, while commodities-linked counters in the energy and plantation sectors lagged behind.

"Regional market sentiment remained buoyed by positive economic indicators from China and strong earnings guidance from U.S. firms. "Locally, we anticipate investors will shift their focus to the upcoming earnings season, which is likely to determine market movement in the next few weeks," he told Business Times.

SPI Asset Management managing director Stephen Innes said the FBM KLCI is poised to reach the 1600 mark, driven by positive factors from both China and expectations regarding Fed policy. China's announcement of plans for more supportive macro policies to boost growth has provided a lift to local sentiment, he said.

The recent US economic release, particularly the Non-Farm Payroll report for April, fell short of expectations, with job creation coming in below forecasts, unemployment rising, and wage growth remaining subdued.

"This has led to increased expectations of rate cuts in the US, which has been viewed as bullish for global markets," said Innes.

Furthermore, Fed Chair Powell's dovish stance during last week's press conference has continued to resonate with local risk markets as Malaysia's key benchmarks trend higher.

"With these supportive factors in place, it's understandable why the KLCI is eyeing the 1600 level," he added.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng expects buying to continue with the upswing in investor sentiment, supported by a steady and strong inflow of foreign funds into the region, while the increasing daily trading volume signifies a growing appetite for the market.

"We anticipate the FBM KLCI to trend within the range of 1,585-1,605 for the week, with immediate resistance at 1,600 and support at 1,560," said Thong.

https://www.nst.com.my/business/corporate/2024/05/1047024/fbm-klci-closes-near-days-high-buying-interest-utilities-property