KUALA LUMPUR: Bursa Malaysia opened higher today, following Wall Street’s strong overnight gains as progress in Washington suggested the United States government shutdown could soon end.
At 9.14am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 6.87points or 0.4 per cent to 1,634.25 from Monday’s close of 1,627.38. The benchmark index opened 4.41 points firmer at 1,631.52.
Market breadth was positive, with gainers leading losers 313 to 127 and 312 counters unchanged, 1,9094 untraded and 10 suspended. Turnover stood at 235 million units worth RM130.9 million.
On Sunday, a group of moderate Senate Democrats broke ranks with party leaders and voted to advance a bill to fund the government until late January.
Malacca Securities Sdn Bhd said progress towards ending the shutdown lifted buying interest across Wall Street, as investors shrugged off risk-off sentiment linked to Michael Burry’s put positions on technology heavyweights.
The firm said following Wall Street’s resilient overnight performance, the FBM KLCI is expected to rebound further.
“Moreover, we anticipate a spillover effect on local technology stocks, with a key focus on high-momentum names such as Kelington Group Bhd, Vitrox Corp Bhd and Frontken Corp Bhd, the latter showing signs of earnings recovery.
“Mah Sing’s landbanking activities in Penang should provide a healthy project pipeline, particularly benefiting high-rise construction builders like Inta Bina Group Bhd and Binastra Corp Bhd.
“Lastly, dividend payouts from banks and real estate investment trusts remain appealing to investors,” it added.
© New Straits Times Press (M) Bhd
