Bursa Malaysia rises on banking and AI sector optimism

[MALAYSIA] Bursa Malaysia rebounded at the opening bell on Thursday, recovering from the previous session’s losses, driven by renewed buying interest in select blue-chip stocks amid a broader upswing across regional markets.

At 9.10am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.93 points to 1,546.67, up from Wednesday’s close of 1,542.74. The index had opened 2.25 points higher at 1,544.99.

Analysts attributed the rebound to improved sentiment in regional equities, supported by signals from the US Federal Reserve indicating a cautious but steady path in interest rate decisions. Regional indices including Singapore’s Straits Times Index and Japan’s Nikkei 225 also recorded gains, offering a positive backdrop for Malaysian stocks.

Market breadth was broadly positive with 202 gainers surpassing 133 losers, while 251 counters remained unchanged. A total of 156.16 million shares changed hands, amounting to a value of RM77.70 million.

Banking stocks led the rally, buoyed by expectations of improved quarterly earnings following stronger net interest margins reported by several major banks. This comes against a backdrop of stable loan growth and a resilient domestic economic outlook, further supporting investor confidence in the financial sector.

In a market note today, Malacca Securities highlighted that the Bursa Finance Index has surged 8.0% since its low on April 9, aided by the recent 100 basis points reduction in the statutory reserve requirement, which has injected around RM19 billion in liquidity into the banking system.

"Traders may find opportunities in lagging banking counters such as Alliance Bank and AmBank," the brokerage said.

It also noted renewed momentum in the artificial intelligence (AI) theme, following potential changes to the Biden administration’s chip restriction policy. This has sparked interest in sectors such as construction, utilities, and technology, all of which are seen as key beneficiaries of rising demand for advanced computing technologies.

The AI trend is consistent with global investor behavior, as semiconductor and tech firms continue to attract capital due to growing demand for AI-driven solutions. Malaysian tech stocks with links to the AI supply chain are expected to remain in focus as investors seek exposure to high-growth segments.

Among leading counters, Maybank added four sen to RM9.92, while Public Bank and CIMB rose one sen each to RM4.46 and RM6.88, respectively. Meanwhile, Tenaga Nasional eased two sen to RM14.28, and IHH Healthcare slipped three sen to RM6.98.

In active trading, Sapura Energy and Magma were flat at 4.5 sen and 35.5 sen respectively. Lotte Chemical advanced seven sen to 61.5 sen, while SFP Tech edged up by half a sen to 22 sen.

Commodity-related counters posted a mixed performance. Plantation stocks benefited from stronger crude palm oil prices, while energy shares were more subdued amid ongoing volatility in global oil markets. Investors are watching supply-demand developments in the commodity space for further direction.

On the broader market, the FBM Emas Index climbed 28.47 points to 11,520.28, the FBMT 100 Index rose 28.95 points to 11,285.98, and the FBM Emas Shariah Index increased 23.37 points to 11,456.70.

Elsewhere, the FBM 70 Index gained 43.04 points to 16,309.07, while the FBM ACE Index slipped 14 points to 4,646.86.

Sector-wise, the Financial Services Index jumped 47.67 points to 18,102.56, the Industrial Products and Services Index edged up 0.67 point to 153.68, the Energy Index added 2.51 points to 688.95, and the Plantation Index rose 12.89 points to 7,213.92.