FBM KLCI Climbs Above 1,739 Despite Global Market Weakness

The FBM KLCI gained 1.03% to close at 1,739 on Monday, supported by stronger buying momentum at the start of May and improved overall market sentiment. Market breadth turned positive with 673 gainers outpacing 498 decliners. Technology stocks led the rally, rising 2.98%, followed by Utilities at 1.66% and Telecommunications & Media at 1.18%, while Consumer, Transportation & Logistics and Energy counters ended lower.

Global Market Weakness

Globally, investor sentiment weakened after escalating Middle East tensions involving Iran triggered concerns over energy supply disruptions near the Strait of Hormuz. Wall Street closed lower, with the Dow Jones Industrial Average falling 1.13%, while the S&P 500 and Nasdaq also declined as crude oil prices surged sharply, fuelling inflation concerns and reinforcing expectations of prolonged higher interest rates. European equities also retreated amid geopolitical tensions and renewed trade concerns involving proposed US tariffs on European vehicles.

AI-related momentum

Despite the cautious external backdrop, Bursa Malaysia may remain relatively resilient, supported by defensive sectors such as Utilities and Telco, while Technology counters continue to benefit from AI-related momentum. Technically, the FBM KLCI’s breakout from a symmetrical triangle formation suggests potential upside towards the 1,777 level, although near-term volatility and profit-taking may emerge following overnight weakness in US markets.

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Staff Writer

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