The FBM KLCI rebounded on Wednesday, rising 0.70% to 1,748.54 and snapping a two-day losing streak as trading resumed following the public holiday.
Market breadth turned positive, with 777 advancers against 466 decliners, while 582 counters were unchanged.
Utilities led the gains, climbing 3.65%, followed by Technology at 2.13% and Construction at 1.22%. Meanwhile, REITs fell 1.18%, Plantation declined 0.90% and Telecommunications & Media slipped 0.52%.
Market Outlook: Merdeka
We expect the FBM KLCI to extend its upward momentum, supported by potential pre-Merdeka buying interest ahead of National Day celebrations.
The ongoing earnings season is likely to keep investors selective, with corporate results and company developments continuing to influence individual stock performance.
Domestic-focused and consumer-linked counters could attract early interest from patriotic-themed positioning and index-linked flows ahead of Merdeka, while Plantation stocks may benefit from recent strength in crude palm oil prices.
Technology counters are also expected to remain in focus following Nvidia’s stronger-than-expected earnings and upbeat outlook, which could improve sentiment towards AI-related and semiconductor stocks.
FBMKLCI Technical Outlook
The FBM KLCI is testing the key 1,750–1,760 resistance zone while remaining above its 9- and 20-day moving averages, indicating positive near-term momentum.
A decisive breakout above 1,755 could reinforce the bullish trend and pave the way for further gains. On the downside, 1,720 remains the key support, followed by 1,700 should profit-taking emerge.
Overall, the near-term bias remains positive, although a sustained break above 1,750–1,760 is needed to confirm a stronger recovery.
