Bursa Malaysia rises on trade talk hopes and foreign inflows

[MALAYSIA] Bursa Malaysia continued its upward trajectory on Monday, buoyed by growing optimism that trade discussions between the United States and China could resume in the near future.

The positive sentiment stems from recent comments by US Treasury Secretary Janet Yellen, who alluded to a “constructive dialogue” with Chinese officials in the coming weeks. Analysts believe that any thawing of trade tensions could offer a significant boost to global supply chains, particularly benefiting export-reliant economies such as Malaysia.

As of 9.05am, the benchmark FBM KLCI advanced 2.84 points to 1,545.33, extending the buying momentum observed last Friday. US markets also ended last week on a strong note, following a better-than-expected payrolls report that signaled continued resilience in the American economy.

The robust jobs data has helped allay fears surrounding the Federal Reserve’s next move on interest rates. With inflation appearing to stabilize, economists anticipate a more cautious approach to tightening monetary policy—an outlook that bodes well for investor sentiment in emerging markets like Malaysia.

On the technical front, TA Securities Research observed that the FBM KLCI is approaching overbought territory after two weeks of gains. “Short-term momentum indicators are flashing signs of overheating, suggesting a potential pause or consolidation driven by profit-taking activity,” the firm noted.

However, it added that weekly indicators remain positive, indicating that downside risk could be cushioned by continued optimism over a potential US-China trade resolution.

From a sectoral standpoint, technology and plantation stocks have led the recent rally. The tech sector has seen renewed strength on the back of rising semiconductor demand, while plantation counters have benefited from a rebound in palm oil prices amid tightening global supplies. This combined sectoral momentum has helped underpin the broader market’s performance.

Rakuten Trade, in its market note, pointed to the return of foreign buying, reversing the outflows witnessed since the start of 2025. “We expect the index to hover within the 1,540–1,555 range today. Additionally, the Ringgit has strengthened to RM4.26 against the US dollar,” it said.

The local currency’s appreciation follows a weakening greenback and firmer commodity prices—factors that traditionally support Malaysia’s export earnings. Market watchers are assessing whether this trend will continue to attract foreign investment into domestic equities and bonds.

In corporate developments, engineering firm West River debuted on the ACE Market at a modest premium, opening at 39.5 sen—0.5 sen above its IPO price. The counter was the most actively traded, with 21.15 million shares changing hands. Other top active stocks included SFP Tech, which rose 1.5 sen to 23.5 sen, and Nationgate, up five sen to RM1.57.