Energy, Healthcare, and Tech boost for local market

The FBM KLCI closed marginally higher, rising 0.08% or 1.22 points to 1,610.17 amid mixed regional performance. Positive sectors included energy (+3.4%), healthcare (+1.8%), and technology (+1.8%), while telecommunications (-1.2%) and plantation (-0.5%) sectors saw losses. The market breadth was positive with 798 gainers against 447 losers, with a total volume of 5.91 billion shares valued at RM4.35 billion.

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Regional indices showed varied results: HSI gained 0.97% to 18,112.63, SHCOMP slipped 0.28% to 3,028.92, Nikkei 225 declined 0.40% to 38,720.47, and STI climbed 0.52% to 3,324.53. Wall Street also closed mixed; the DJIA slid 0.17% to 38,647.10, while Nasdaq advanced 0.34% to 17,667.56, and S&P500 added 0.23% to 5,433.74.

Energy, Healthcare, and Tech boost

Despite a mixed performance, sentiment remained tuned to the recent weak inflation data from May. The Federal Reserve’s indication of potentially only one rate adjustment this year left traders optimistic that if CPI data remains subdued, further rate cuts may occur. The US 10-year yield dropped to 4.248% from 4.402% at the beginning of June.

In Hong Kong, the HSI rebounded above 18,000 amid muted US inflation figures and manageable EU tariffs on Chinese EVs. Back home, the FBM KLCI pared earlier gains due to late profit-taking but is expected to see continued stock accumulation.

With consensus upgrading earnings growth for 2025, the benchmark index’s prospects for 2024/25 look strong, setting a 2024 target at 1,730 based on a market PER of 16.5x, up from 1,660 previously. Today, the FBM KLCI is expected to trend between 1,610 and 1,620.