KLCI rebounds as technology and utilities stocks lead gains

KUALA LUMPUR: The FBM KLCI extended its rebound on Tuesday, rising 0.47% to close at 1,611.85 as improving global risk appetite and easing oil prices supported broad-based buying in heavyweight stocks.

Market breadth was positive, with 683 advancers outnumbering 380 decliners, reflecting stronger investor participation across Bursa Malaysia.

KLCI rebounds on technology stocks

Utilities led sectoral gains, rising 2.08%, followed by Health Care, which advanced 1.95%, and Technology, which gained 1.23%. Energy slipped 0.35%, while Transportation eased 0.28%.

The recovery was supported by a stronger regional market environment, as investors responded to renewed enthusiasm surrounding artificial intelligence (AI) stocks and Anthropic’s filing for an initial public offering.

Technically, the index reclaimed the 1,610 level and moved above its nine-day exponential moving average, signalling improving short-term momentum. However, it remained below its 20-day, 120-day and 200-day moving averages, suggesting that the broader downtrend remained intact.

Focus on technology

The next resistance level is seen at 1,630, while immediate support is placed at 1,610, followed by 1,600 and 1,580.

Technology stocks are expected to remain in focus, while Utilities could attract further buying following their strong performance. Financial Services stocks may experience increased volatility ahead of the US Federal Reserve’s interest rate decision.

The index is expected to receive support from improved regional sentiment, although developments in the Middle East and the Fed’s policy outlook remain key risks.

BusinessNews