FBM KLCI pulls higher following Nvidia's blowout earnings, rosy forecast

KUALA LUMPUR: The FBM KLCI gapped higher on Thursday as bullish investor sentiment ramped up following robust earnings and an optimistic forecast from leading chipmaker Nvidia.

Wall Street stocks ended higher overnight amid fears of a bubble in the AI space and delays in the release of US economic data leaving a question mark hanging over the Federal Reserve's December rate decision. 

The benchmark FBM KLCI rose 4.55 points to 1,628.44, building on the previous day's recovery, and bringing the index back to a positive performance for the week so far.

However, TA Securities said the FBM KLCI is expected to trade sideways, with investors remaining cautious ahead of the delayed release of the US September jobs report, which could provide key signals on the Fed's next policy move.

"Immediate support will be at the 61.8%FR (1,564), with stronger supports seen at the 50%FR (1,527) followed by the 38.2%FR

(1,490). Immediate resistance remains the December 2024 high of 1,644, with the highs of 1,684, and 1,695 as tougher upside hurdles," it said in a note.

Malacca Securities noted the local technology sector is likely to see renewed optimism given Nvidia's strong third-quarter earnings result, benefitting companies like Frontken and Inari Amertron.

Meanwhile, buying interest has also re-emerged in the construction sector, with bargain-hunting activities seen across Gamuda and Sunway Construction, it said.

"We believe this is justifiable given their discounted valuations and strong earnings visibility, underpinned by various mega infrastructure projects and data centre investments in the country."

Among the most actively traded shares on Bursa Malaysia, MUI industries rose 0.5 sen to 6.5 sen, Perak Transit gained 1.5 sen to 30 sne and AHB dropped 0.5 sen to three sen.