KLCI Eyes 1,735 as Tech Rally Lifts Market Despite Global Risks

KUALA LUMPUR, Aug 3 — The FBM KLCI ended higher last week as bargain hunting across key sectors lifted the benchmark index despite lingering concerns over elevated US Treasury yields and geopolitical tensions in the Middle East.

The benchmark index gained 4.50 points, or 0.26%, to close at 1,724.90, with market breadth remaining firmly positive as 713 stocks advanced against 407 decliners. Total trading volume stood at 3.10 billion shares worth RM3.57 billion.

Technology led the market rally, surging 4.19%, followed by Telecommunications (+0.98%) and Industrial Products and Services (+0.93%). Plantation and REIT counters were the only sectors to end lower.

Tech rally

The local market tracked stronger regional and US equity performance. Japan’s Nikkei 225 rose 4.03%, China’s Shanghai Composite gained 0.72%, while Hong Kong’s Hang Seng Index closed at a two-month high amid renewed buying interest in technology shares.

On Wall Street, the Dow Jones Industrial Average gained 0.53%, the S&P 500 advanced 0.70% and the Nasdaq Composite climbed 1.00%, supported by continued optimism over corporate earnings despite the US 10-year Treasury yield rising to around 4.72%, its highest level in nearly two years.

Meanwhile, Brent crude remained elevated near US$88 a barrel as tensions in the Middle East continued to support oil prices.

Looking ahead, analysts expect the FBM KLCI to trade between 1,720 and 1,735 as investors remain cautiously optimistic. While improving global sentiment and strength in technology stocks should provide support, intermittent profit-taking and external risks are likely to keep gains measured in the near term.

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