Broad market sentiment on Bursa sees improvement

The FBM KLCI (+0.7%) closed higher, tracking the positive performance of Wall Street last week. Lower liners also marched higher, reflecting improved broad market sentiment.

The market was led by the Construction (+2.2%), Property (+1.3%), and Technology (+1.2%) sectors, which were the preferred option of foreign funds. Conversely, the Energy (-1.4%) sector was the top loser as crude oil prices slipped.

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Global Markets Review

 Wall Street closed higher, with indices closed at refresh new record highs following the Fed chairman’s speech, which suggested a dovish tone. Meanwhile, the European stock market closed lower, led by losses in the Household Goods and Utilities sectors. Asian stock markets ended mostly in red after China’s GDP and retail sales figures missed expectations.

Market Outlook: Broad market sentiment

Following the bullish Wall Street’s strong performance overnight, we reckon the key index may build onto its previous session gains to attempt for a breakthrough above the 1,630 pts.

Additionally, attention should be given to market sentiment following slower-than-expected economic data from China which may limit any potential gains. Investors are also advised to keep an eye on the ongoing earnings season in the US throughout the week.

“We anticipate that the Construction, Utilities, and Technology sectors will continue to be preferred choices for foreign fund investors. Additionally, opportunities are expected in the Plantation sector, driven by news of palm oil trade deals with China and potential supply concerns due to La Niña in the second half of 2024,” says Apex Research.