Cautious optimism as KLCI reopens after Raya break

Malaysian equities are expected to reopen with cautious optimism following the Hari Raya Haji holiday, supported by modest gains on Wall Street and stronger regional market performance despite lingering geopolitical uncertainties.

The FBM KLCI fell 0.55% to close at 1,699.02 on Tuesday as investors reduced exposure ahead of the long break amid heightened tensions following fresh United States strikes against Iran. Market breadth remained negative with 689 decliners against 421 gainers.

KLCI after Raya

Technology stocks led sectoral gains, rising 0.96%, followed by Telecommunications & Media at 0.38%. However, Utilities fell 1.56%, while Healthcare and Consumer sectors declined 1.44% and 1.05% respectively.

Globally, Wall Street ended marginally higher overnight, with the Dow Jones rising 0.36%, while the S&P 500 and Nasdaq posted slight gains. European markets were also steady as investors monitored falling oil prices and developments surrounding the US-Iran conflict.

Investor sentiment improved slightly after Iranian state television reported a draft framework aimed at restoring commercial shipping through the Strait of Hormuz. However, the White House dismissed the report as fabricated.

Analysts continue to favour Utilities on data centre investment themes while remaining selective on Technology amid AI-related volatility. Technically, the FBM KLCI remains supported above its long-term uptrend line, with immediate support at 1,690 and resistance at 1,720.

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