FBM KLCI rises at lunch break as broader buying lifts market sentiment

KUALA LUMPUR: The FBM KLCI pushed higher at lunch break amid steadier sentiment on Bursa Malaysia as buying interest broadened across key sectors

At lunch break, the FBM KLCI rose 17.37 points, or 1.08%, to 1,621.75 after touching an intraday high of 1,624.90.

There were 558 gainers, 476 losers and 490 counters traded unchanged on the Bursa Malaysia. Turnover stood at 2.7 billion shares valued at RM1.3bil.

Hong Leong Investment Bank Research (HLIB Research) said the FBM KLCI could still see bouts of volatility in the near term as investors digest the post-Sabah election landscape and anticipate a potential cabinet reshuffle, which the Prime Minister may use to strengthen Federal–Sabah ties and signal greater inclusivity amid shifting political dynamics.

“With the Sabah polls concluded and Hajiji Noor sworn in for a second term as Chief Minister, the new coalition government is expected to align more closely with the PM’s Madani administration and national priorities,” the research house said.

HLIB said the FBM KLCI appears poised for a technical rebound in December, supported by rising expectations of a US Federal Reserve rate cut and a stable November results season.

This comes as December is typically a stronger month for the index, following two consecutive monthly declines in October, when it fell 2.7 points, and November, when it slipped 4.7 points.

HLIB said any dips in the FBM KLCI should find solid support around the 1,589–1,600 range, backed by firm fundamentals, attractive valuations and favourable seasonality.

Meanwhile, TA Securities said the local market is likely to continue drifting lower this week, given the bearish momentum and weak market breadth seen in last week’s trading sessions.

“The absence of positive domestic catalysts is expected to discourage firmer trading commitments, while persistent bearish indicators suggest that any recovery attempts may struggle to sustain due to weak follow-through momentum and limited participation,” it said.

Hence, investors should expect the current cautious trading sentiment to persist for another week before bargain hunter's return to cushion downside

Among the gainers, Nestlé jumped RM1.80 to RM108.70, BLD Plantation rose 70 sen to RM16.50, Hong Leong Industries added 64 sen to RM15.64 and PETRONAS Dagangan climbed 60 sen to RM20.42.

Kuala Lumpur Kepong led the decliners, falling 42 sen to RM19.78. PPB Group slid 30 sen to RM10.70, Inari lost 20 sen to RM1.99 and Can-One eased 20 sen to RM1.65.