Market Sentiment Rebounds on OPR Cut and Global Tech Rally

Investor sentiment turned more upbeat across the board, driven by Bank Negara Malaysia’s rate cut and strong global tech-led gains. The FBM KLCI ended its losing streak, while global markets continued their upward momentum amid optimism over trade prospects and robust earnings.

Brief Segment Breakdown: Sentiment Rebounds

Malaysia Market Review
• FBM KLCI rebounded 0.5% to 1,536.52, ending a three-day slide.
• Gains led by banking stocks; sentiment lifted by BNM’s 25-bps rate cut.
• Most sectors rose, except plantations and energy which lagged behind.
Global Markets Review
• US markets hit new highs, led by the S&P 500 and Nasdaq; Dow gained 0.4%.
• European shares climbed on trade optimism and mining strength.
• Most Asian markets closed higher on Nvidia’s rally; China and Hong Kong were muted.
• Japan underperformed due to new US tariffs; South Korea led gains on chip stocks.
Market Outlook
• Positive outlook for FBM KLCI supported by OPR cut and trade optimism.
• Index expected to range between 1,530 and 1,550 ahead of weekend.
• Bargain-hunting likely to persist; IPI data to offer further market direction.
Sector Focus
• Buying interest expected in consumer discretionary and REITs on lower borrowing costs.
• Tech stocks poised for gains on global tech momentum.
FBM KLCI Technical Outlook
• Index formed a hammer candle, signaling a potential reversal.
• MACD and RSI remain positive; resistance at 1,560 and 1,580, support at 1,500.