Soft Rebound on Bargain Hunting, Global Tech Strength

The FBM KLCI rose 0.25% to 1,712.67 on Friday, lifted by bargain hunting after several weak sessions.

Market breadth turned positive with 631 gainers against 539 decliners. Technology (+3.00%), Energy (+2.01%), and Industrial Products (+1.63%) led sectoral gains, while REIT (-0.79%) and Consumer (-0.39%) lagged.

Globally, U.S. equities closed higher, supported by strong corporate earnings, with the Dow (+0.58%), S&P 500 (+0.37%), and Nasdaq (+0.19%) advancing. European markets also gained, buoyed by optimism in technology stocks after French President Emmanuel Macron pledged EUR1.5bn investment in the sector.

Soft Rebound

Asian markets followed suit, with the Nikkei 225 (+2.68%), Shenzhen Index (+2.30%), and Hang Seng (+0.86%) closing higher. Japan’s core inflation slowed to its lowest since March 2022, easing expectations of further Bank of Japan rate hikes.

Meanwhile, geopolitical risks persisted as U.S. President Donald Trump ruled out rushing into a deal with Iran, while Tehran accused Washington of dishonesty in negotiations. Looking ahead, momentum in technology stocks may continue to support sentiment, though upside could be capped by external risks.

Domestically, investors are expected to focus on fundamentally strong sectors such as Technology and Utilities, while Energy may soften amid crude oil price pullbacks.

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