Bursa Malaysia steadies as foreign funds return and cybersecurity stocks shine

[MALAYSIA] Investors on Bursa Malaysia appeared to be catching their breath after recent gains, following a mixed performance on Wall Street overnight ahead of key earnings reports from U.S. tech giants.

The benchmark FBM KLCI opened marginally lower, dipping 0.61 points to 1,520.98, as blue-chip counters took a break after four straight sessions of gains. The index remained near four-week highs, with support emerging from renewed foreign fund interest after a prolonged period of net selling.

Market sentiment received a boost from improved regional optimism, as Asian equities showed resilience despite ongoing uncertainties over U.S. interest rate policies. Analysts attribute the rebound in foreign inflows to Malaysia’s appealing valuations and solid economic fundamentals, particularly drawing interest to sectors such as technology and commodities.

Rakuten Trade noted a surprising reversal in foreign investor behavior, with a net inflow of US$540 million into the local equity market over the past three sessions. “If this buying trend sustains, we anticipate the index will consolidate between the 1,520 and 1,530 levels today and could soon break past the key 1,530 threshold,” it said in a market note.

Investors are also eyeing the upcoming U.S. Federal Reserve meeting for guidance on potential interest rate cuts. A dovish tone could further encourage foreign buying in emerging markets like Malaysia, while a hawkish stance might prompt profit-taking after the recent rally. On the domestic front, Malacca Securities Research highlighted growing investor interest in cybersecurity stocks amid rising global cyber threats.

“We maintain a positive outlook on cybersecurity counters such as LGMS and Cloudpoint, driven by increasing awareness of digital security as digitalisation accelerates worldwide,” the firm stated. It added that software-related stocks could be more insulated from the impact of reciprocal trade tariffs.

The sector’s momentum follows a string of high-profile data breaches in the region, including attacks targeting Malaysian financial firms, prompting heightened investment in cybersecurity by both public and private entities.

The research house also suggested keeping an eye on select names in construction, oil & gas, technology, utilities, and healthcare gloves. Additionally, attention was on WTEC’s debut on the ACE Market.

WTEC, a foam product manufacturer, saw active early trading but lacked strong investor enthusiasm. The stock opened unchanged at 25 sen and slipped 0.5 sen, or 2%, within the first 15 minutes of trading, with about seven million shares changing hands.

Among other actively traded stocks, NexG rose one sen to 38 sen, while Jiankun remained flat at three sen. On the FBM KLCI, Nestlé surged RM1.92 to RM82.30 after reporting better-than-expected earnings, driven by solid domestic demand and lower input costs. The strong performance has fueled optimism in the consumer staples segment, often considered a safe haven amid market fluctuations.

Elsewhere, PETRONAS Dagangan advanced 12 sen to RM19.10, while Hong Leong Bank declined 14 sen to RM19.86.