The FBM KLCI is expected to trade cautiously today as investors weigh mixed Big Tech earnings, a divided Federal Reserve policy decision and the upcoming Negeri Sembilan state election. Overnight, Wall Street retreated sharply after the Fed kept interest rates unchanged but delivered an unusually split 9-3 vote, with three policymakers favouring a rate hike, while Treasury yields climbed amid persistent inflation concerns.
Technology sentiment remained mixed after Microsoft outperformed expectations and gained in after-hours trading, while Meta slid despite beating revenue estimates, highlighting continued investor concerns over the sustainability of artificial intelligence infrastructure spending.
Fed Split Vote
Attention now shifts to earnings from Apple and Amazon, alongside key U.S. economic data including the Core PCE Price Index and second-quarter GDP estimate.
On Bursa Malaysia, the benchmark index rose 0.18% to 1,715.56 on Wednesday, supported by gains in telecommunications, technology and plantation stocks. However, financial services, healthcare and energy counters lagged.
The technology sector is expected to remain volatile in the near term, while energy counters may benefit from firmer crude oil prices amid escalating geopolitical tensions in the Middle East. Plantation stocks could also draw interest if higher oil prices persist.
Technically, the FBM KLCI continues to trade above its key moving averages, indicating the recovery trend remains intact. Immediate resistance is seen at 1,720, with stronger upside potential towards the 1,760-1,770 region if that level is breached. Support is pegged at the psychological 1,700 level.
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