KLCI Extends Winning Streak as Regional Chip Rally Lifts Market Sentiment

Bursa Malaysia advanced for a sixth consecutive session as strong regional semiconductor gains, easing geopolitical concerns and improving investor sentiment supported broader market strength despite lingering oil volatility.

KLCI Eyes Higher Resistance

The FBM KLCI extended its winning streak to six consecutive sessions on Wednesday, climbing 0.90% to close at 1,748.17 as improving regional sentiment and a strong rally in Asian semiconductor stocks lifted investor confidence. Market breadth remained positive, with 690 gainers outpacing 487 losers, reflecting broad-based buying across the local bourse.

Construction, Utilities and Technology emerged as the top-performing sectors, gaining 2.42%, 2.29% and 1.81%, respectively. Healthcare was the only major laggard, falling 1.76% amid continued sector rotation into growth and cyclical stocks.

Regional markets provided a supportive backdrop after the Philadelphia Semiconductor Index surged 6% overnight, fuelling sharp gains across Asia. South Korea’s Kospi jumped 3.76%, driven by strong performances frommajor chipmakers, while Japan’s Nikkei 225 gained 3.66%, supported by semiconductor-related counters and robust earnings from SoftBank.

Overnight, Wall Street delivered a mixed performance. The Dow Jones Industrial Average rose to another record high, while the S&P 500 and Nasdaq Composite retreated as profit-taking weighed on technology shares despite solid corporate earnings from several companies.

Looking ahead, the local market is expected to maintain its positive momentum, with the FBM KLCI likely to test the 1,760 to 1,770 resistance zone after successfully breaking above the key 1,735 level.

Investors will continue monitoring developments in the global semiconductor sector, alongside geopolitical risks following reports of a Houthi attack on a Saudi oil tanker that revived volatility in crude oil prices.

Attention will also turn to the upcoming US July non-farm payrolls report, which could provide fresh clues on the Federal Reserve’s interest rate trajectory.

Unless geopolitical tensions escalate significantly, Malaysia’s equity market is expected to remain supported by constructive regional sentiment, improving risk appetite and continued rotation into technology, construction, utilities and selected energy-related stocks.

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