Bursa Malaysia extends gains on improved US political outlook
KUALA LUMPUR: Bursa Malaysia continued its upward momentum, supported by improved market sentiment amid growing optimism over political developments in the United States.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) ended 0.55 per cent higher, rising 8.37 points to finish at 1,528.16, compared to its previous close of 1,519.79.
The broader market also saw a positive tone, with 509 gainers outpacing 406 losers, while 495 counters remained unchanged.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan aid cyclical sectors on Bursa Malaysia, especially financial, industrial, and consumer-related counters are making a strong rebound.
"These sectors, which tend to benefit from lower interest rates and improved economic sentiment, responded positively to the increased likelihood of a more accommodative US monetary policy stance," he said.
He noted that the shifting outlook in the United States could offer Malaysia a twofold advantage, boosting investor confidence and attracting increased capital inflows.
"A weaker US dollar and dovish Fed would support the ringgit, enhance import purchasing power, and draw foreign investors back into Malaysian equities and bonds. However, challenges remain.
"The looming threat of the 24 per cent reciprocal US tariff on Malaysian exports, though temporarily suspended, continues to weigh on export-driven sectors," he said.
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