KUALA LUMPUR: Bursa Malaysia kept its momentum, closing above the 1,600 mark as Asian markets staged a comeback to erase the ghosts of last week's selloff and ride high on a resurgence in Japanese equities.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 0.18 per cent or 2.86 points to 1,609.52, compared to Monday's close of 1,606.66.

However, the broader market was negative as losers led gainers by 696 to 332, while 471 counters remained unchanged.

SPI Asset Management managing partner Stephen Innes said the expectations of monetary easing by the Federal Reserve had contributed to the positive sentiment, as lower interest rates in the US could lead to increased capital flows into emerging markets like Malaysia. 

"This anticipation has helped lift investor confidence, driving up the index. Malaysia is witnessing a surge in initial public offering activity driven by a confluence of auspicious factors. 

"The country is on a robust trajectory, buoyed by significant capital inflows in the first half of the year," he told Business Times.

Innes said the Malaysian economy is thriving, marked by sturdy gross domestic products (GDP) growth and a business-friendly climate, making it an alluring stage for local and international companies aiming for listings.

The projection for the FBM KLCI depends on how the US economic situation plays out.

"It's a very fine line between soft landing and recession. Still I think a 50 basis point cut by the Fed, this will further weaken the US dollar and support local markets.

"I certainly see a test of 1,615 soon, but ultimately, based on inflows, I think the market could push to 1,625 if the US soft landing scenario stays intact and a gradual weakening of the US dollar," he added.

https://www.nst.com.my/business/corporate/2024/08/1091043/bursa-malaysia-keeps-momentum-close-above-1600-asian-markets