Categories: FBM KLCIStocks and Markets

Rate cuts boost for Bursa this week

The FBM KLCI is anticipated to continue its upward trajectory this week, bolstered by rate cuts, China’s ongoing commitment to supportive monetary policy to drive economic recovery, as well as the continual promising support from the recent Republican election victory.

Rate cuts

“We expect the FBM KLCI to float above 1,600 psychological level overtime. Still, the weakness in trading liquidity may cap any potential gains over the lower liners.

“We continue to favour the Plantation sector that is riding onto the uninterrupted rally in CPO prices which steadied above RM5,000/MT. Meanwhile, the Technology sector may advance in tandem with the gains in Nasdaq on last Friday,” Apex says.

Global market review

The US stock market extended its post-election rally on Friday, spurring US stocks to the strongest week in a year. Asian market performance was mixed. Japan’s Nikkei 225 rose 0.3% while Chinese stocks fell. Some markets tracked strength in Wall Street after the Fed cut interest rates as expected, while anticipation of more fiscal stimulus in China also buoyed local markets.

Market Outlook. The FBM KLCI is anticipated to continue its upward trajectory this week, bolstered by rate cuts, China’s ongoing commitment to supportive monetary policy to drive economic recovery, as well as the continual promising support from the recent Republican election victory. We expect the FBM KLCI to float above 1,600 psychological level overtime. Still, the weakness in trading liquidity may cap any potential gains over the lower liners. We continue to favour the Plantation sector that is riding onto the uninterrupted rally in CPO prices which steadied above RM5,000/MT. Meanwhile, the Technology sector may advance in tandem with the gains in Nasdaq on last Friday.