Bursa Malaysia recovers early amid cautious optimism

[MALAYSIA] Bursa Malaysia opened slightly weaker this morning but quickly reversed course, buoyed by fresh buying in heavyweight stocks as investors returned to the market following recent declines. At 9.25am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.85 points to 1,541.65, rebounding from Tuesday’s close of 1,536.80.

The local bourse’s recovery mirrored gains across regional markets, which are treading cautiously higher ahead of major central bank policy decisions. Sentiment has improved amid expectations of potential interest rate cuts later this year, particularly after last week’s softer US jobs report eased concerns over prolonged monetary tightening. This broader optimism has helped underpin regional equities, including those in Malaysia.

The FBM KLCI had initially opened 0.24 of-a-point lower at 1,536.56. At the same time, total turnover reached 389.23 million shares worth RM156.08 million. Market breadth was positive, with 268 gainers surpassing 167 decliners. Meanwhile, 276 counters were unchanged, 1,624 remained untraded, and nine were suspended.

Notably, the technology sector saw selective buying interest, tracking overnight gains on the Nasdaq. Analysts attribute this to growing risk appetite and early signs of a recovery in semiconductor demand. Counters such as Malaysian Pacific Industries and Unisem were among the beneficiaries, although overall trading volume remained muted relative to historical norms.

While broader market conditions remain tentative ahead of upcoming trade negotiations, Malacca Securities Sdn Bhd noted that investors may shift focus toward defensive segments such as consumer products and services, which could benefit from lower import costs and improved margins due to their diversified inventories.

“Separately, we see trading potential in ITMAX, following its breakout on strong volume, backed by ongoing contract awards in Johor and likely momentum in Penang,” the brokerage said.

Market watchers are also turning their attention to the upcoming corporate earnings season, set to kick off in earnest next week. Preliminary guidance points to mixed sectoral performance, with plantation companies likely to post weaker earnings due to falling crude palm oil prices. However, banks could deliver positive surprises, supported by more stable net interest margins.

“We also believe ReachTen remains undervalued and see ongoing accumulation opportunities,” the firm added. Another dealer highlighted that investors will be closely watching this week’s US Federal Open Market Committee (FOMC) meeting on May 6–7 and Bank Negara Malaysia’s Monetary Policy Committee (MPC) meeting scheduled for May 7–8.

Among the heavyweights, Maybank rose three sen to RM9.99, while Tenaga Nasional and IHH Healthcare gained four sen each to RM14.10 and RM7.04, respectively. CIMB advanced two sen to RM6.92, whereas Public Bank eased two sen to RM4.45.

On the commodities front, Brent crude remained firm above US$83 per barrel, offering some support to energy-related stocks. In contrast, palm oil futures continued to retreat, marking a third consecutive session of losses and falling below RM3,900 per tonne — a trend that could weigh on plantation counters in the short term.

In active trading, Sapura Energy, Reach Ten, and Avangaad each edged up half-a-sen to 4.5 sen, 56.5 sen, and 28 sen, respectively. Pos Malaysia gained 3.5 sen to 30.5 sen. Across the indices, the FBM Emas Index added 39.91 points to 11,453.38, the FBMT 100 Index climbed 39.12 points to 11,226.77, and the FBM Emas Shariah Index increased 54.44 points to 11,365.65.

The FBM 70 Index rose 71.46 points to 16,133.69, while the FBM ACE Index edged down 0.74 of-a-point to 4,638.03. By sector, the Financial Services Index gained 20.31 points to 18,149.50, the Industrial Products and Services Index edged up 0.87 of-a-point to 151.35, and the Energy Index added 4.91 points to 683.53. However, the Plantation Index fell 7.46 points to 7,277.50.