KLCI Stays Resilient as Bargain-Hunting Lifts Large Caps

KUALA LUMPUR: The FBM KLCI closed 4.37 points, or 0.27%, higher at 1,627.72 on Wednesday, up from Tuesday’s 1,623.35, as bargain-hunting in larger-cap names and resilient economic fundamentals kept local sentiment steady.

Market breadth was slightly positive, with 541 gainers edging out 532 losers.

Healthcare led the sectoral gainers with a 2.77% rise, followed by Transportation & Logistics (+1.05%) and Plantation (+0.95%). Construction (-1.40%), Energy (-0.84%) and Utilities (-0.59%) were the biggest decliners.

KLCI Resilient

Analysts said sentiment may stay fragile after hotter-than-expected US inflation revived expectations of further Federal Reserve tightening, which could weigh on regional risk appetite.

While the improved breadth and continued bargain-hunting suggest domestic sentiment has stabilised, they said upside could be capped by higher-for-longer rate expectations, persistent foreign selling and Middle East geopolitical risks. The KLCI is expected to stay range-bound, with investors likely to favour selective domestic and defensive exposures.

Plantation stocks could keep a positive bias, as elevated energy prices improve the relative economics of biodiesel and expectations of tighter palm oil fundamentals into 2027 support crude palm oil prices.

Upstream energy counters may see selective buying with Brent above US$100 a barrel, though the sector could stay volatile on Middle East developments. Transportation and logistics stocks could trade mixed, supported by stronger domestic activity but pressured by fuel-cost concerns.

On the technical front, the index continues to edge higher with 1,600 as immediate support, but remains below most key moving averages, suggesting the broader trend is still weak. A decisive break below 1,600 could send it towards 1,580, while rebounds are likely to meet selling pressure.

The index needs to reclaim the 1,640–1,650 range to improve its outlook, with a break above 1,650 signalling a stronger bullish reversal. Until then, the bias remains bearish.

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