FBM KLCI Extends Winning Streak on Fed Rate Cut Hopes, Technology Leads Gains

KUALA LUMPUR: The FBM KLCI climbed 1.2% on Wednesday, marking its seventh straight day of gains, supported by sustained buying in heavyweight banking stocks and optimism over a potential US Federal Reserve rate cut. Technology counters surged 2.8% to lead sectoral gains, while industrial products slipped 1.0%.

Fed rate cut

Globally, Wall Street closed higher after softer-than-expected July US inflation data reinforced expectations for a Fed rate cut, with both the S&P 500 and Nasdaq ending at record highs for the second consecutive day. European markets hit near two-week highs, and Asian equities mostly advanced, with Japan’s Nikkei 225 at a record peak and Hong Kong’s Hang Seng Index jumping 2.6%.

Despite ongoing foreign outflows, sentiment on Bursa Malaysia remained buoyant, aided by the US’s 19% tariff announcement on 1 August, which is seen as enhancing Malaysia’s export competitiveness. Analysts expect the local market to maintain its upward momentum, with attention turning to upcoming US Producer Price Index and retail sales data, as well as domestic corporate earnings reports.

RE

Sector-wise, analysts favour selective accumulation in power ancillary and renewable energy stocks, underpinned by data centre expansion and the energy transition, while the technology sector may see continued buying interest in line with Nasdaq’s performance.

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