KLCI Eyes 1,740 as Global Risk Sentiment Improves and Foreign Flows Return

Wall Street Mixed, Bursa Seen Stable Within Range

KUALA LUMPUR, Aug 5 — Global equity markets ended on a strong note as Wall Street closed broadly higher, with both the Dow Jones Industrial Average and the S&P 500 hitting record highs, supported by solid corporate earnings and optimism over a potential US–Iran agreement to reopen the Strait of Hormuz.

The improved risk sentiment saw crude oil prices ease, with Brent crude slipping below the US$80 per barrel level. Meanwhile, the US 10-year Treasury yield declined to 4.615%, reflecting easing bond market pressure.

In Asia, Hong Kong’s Hang Seng Index declined as investors rotated out of defensive banking stocks into artificial intelligence-related counters. Elsewhere, regional markets were mixed amid selective profit-taking.

Sector performance was broadly positive, led by healthcare $\+2\.00%$, technology $\+1\.02%$ and plantation $\+0\.78%$. The only laggards were REITs $\-1\.04%$, utilities $\-0\.44%$ and consumer products and services $\-0\.40%$.

Regional markets were mixed. Japan’s Nikkei 225 rose 0.32% to 63,957.53, while South Korea’s KOSPI advanced 1.62% to 6,358.95. Hong Kong’s Hang Seng Index fell 0.60% to 25,852.92, and China’s Shanghai Composite added 0.33% to 3,822.28. Singapore’s Straits Times Index was largely unchanged, edging down 0.00% to 5,612.25.

KLCI

On Wall Street, sentiment remained firmly positive. The Dow Jones Industrial Average surged 1.71% to 54,085.88, while the Nasdaq Composite jumped 2.59% to 26,584.99. The S&P 500 also advanced 1.79% to close at approximately 7,73x, marking another record-setting session for US equities.

Back home, the FBM KLCI continued its impressive run, closing above the 1,730 psychological level after a soft opening. The benchmark index rose 6.93 points, or 0.40%, to end at 1,732.66. Market breadth remained positive with 621 gainers against 482 losers, while total trading volume stood at 2.80 billion shares valued at RM2.82 billion.

Looking ahead, analysts expect the FBM KLCI to trade within the 1,730 to 1,740 range. Sustained foreign fund inflows, improving global risk appetite, and strength in technology counters are expected to support the index, although intermittent profit-taking may cap upside momentum in the near term.