The FBM KLCI rebounded on Thursday after opening lower as investors weighed the US Federal Reserve’s first interest rate hike since 2023 against continued concerns over oil prices and geopolitical tensions.
At 9.20am, the benchmark index rose 1.96 points or 0.12% to 1,681.17 after opening 1.71 points lower at 1,677.50, The Star reported.
The Fed raised its benchmark interest rate by 25 basis points to 3.75% to 4.00% overnight and signalled further increases ahead.
Wall Street ended lower following the decision, with the Dow Jones Industrial Average falling 1.21% to 51,461.78, the S&P 500 declining 0.44% to 7,552.14 and the Nasdaq Composite easing 0.01% to 25,978.43.
On Bursa Malaysia, Heineken led the gainers, rising 34 sen to RM14.56, while Carlsberg added 22 sen to RM12.60. Nestlé gained 16 sen to RM90.34 and YTL Power climbed 19 sen to RM5.70.
Among the decliners, Malaysian Pacific Industries fell 70 sen to RM39, while Petronas Chemicals eased 20 sen to RM5. Panasonic Manufacturing declined 15 sen to RM5.41 and Sunway Construction lost eight sen to RM7.
ACE Market debutant Pioneer Heat jumped 24%, or six sen, to 31 sen, making it the most actively traded counter with 40.4 million shares changing hands.
Rakuten Trade said the benchmark index was approaching oversold territory, leaving room for bargain hunting in fundamentally sound blue-chip stocks that had come under selling pressure.
“Although geopolitical risks and elevated oil prices remain key headwinds, we expect the index to trade within 1,670–1,690 for today,” the brokerage said.
Berjaya Research Sdn Bhd meanwhile expects the FBM KLCI to remain volatile in the near term as geopolitical tensions and elevated oil prices continue to weigh on sentiment.
The research house said the Fed’s rate hike and shift towards tighter monetary policy could add further pressure on emerging-market equities.
“Against this backdrop, we expect market volatility to remain elevated, with investors likely to adopt a more cautious stance until there is greater clarity on the geopolitical situation and the trajectory of global interest rates,” it said.
Technically, Berjaya Research said the local market had gapped lower and formed a bearish candlestick, moving further away from the 1,700 psychological level.
It placed immediate resistance at 1,700 and 1,714 points, while support was seen at 1,676 and 1,670 points.
“The broader market is likely to remain cautious amid heightened geopolitical uncertainties, tighter U.S. monetary policy and subdued trading activity.”
