Analysts anticipate increased interest in emerging markets as foreign funds enter Malaysia’s equity market. Also, investors will position in the small-cap and lower-liner stocks, which were significantly oversold in recent weeks.
Strong ringgit, on the other hand, will benefit domestic sectors such as Construction, Consumer, Utilities, Financials, and Automotive. More trading opportunities are seen in the Property sector, particularly revolving around data center development and the Johor-Singapore Special Economic Zone.
The FBM KLCI (+0.19%) on Friday closed higher, boosted by buying pressure in Banking and Utility heavyweights, namely CIMB (+15.0 sen) and YTL (+12.0 sen), backed by a stronger ringgit environment and robust inflows from foreign funds following the US Fed rate cut, according to Malacca Securities Research.
Similarly, U.S. stock markets also saw strong momentum, as the Dow approached all-time highs. This week, market participants will focus on key economic indicators, including GDP, unemployment claims and Personal Consumption Expenditures (PCE) price index.
Meanwhile, the European stock markets ended lower, but the Asian stock markets closed on a positive note after BoJ kept its benchmark rate steady at 0.25%.
In the commodities market, Brent oil is trading closer to USD 75 amid ongoing tensions in the Middle East, while gold prices have surged to a new all-time high above USD 2,600. Crude palm oil ended the week on a stronger note.
