KUALA LUMPUR: Bursa Malaysia opened lower today due to mild profit-taking activities.
However, analysts believe the local stock market is expected to continue ramping higher ahead of the upcoming Budget 2024.
At the start of Wednesday trading, the FTSE Bursa Malaysia KLCI (FBM KLCI) was down 0.42 points to 1,434.75 from yesterday's close at 1,435.17. Malacca Securities Research expects the positive local catalyst to support the overall market's conditions at least for the near- to mid-term.
The research firm also noted that global traders had reacted positively to the dovish comments from the US Federal Reserve and China's announcement of another round of stimulus measures to support the economy.
"Buying interest may be seen within the construction, property, building material as well as the utilities sectors ahead of the Budget 2024."We like the renewable energy sector as the government may push out certain initiatives under the National Energy Transition Roadmap (NETR) blueprint," it said.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI took us by surprise as it flew past the 1,430 mark with ease underpinned by foreign buying support across the region.
Thong said the firm expects buying on the banks to persist coupled with the telco sector after the strong profit taking activities for the past month.
"Therefore, we believe the index to possibly scale higher and hover within the 1,435-1,445 range today in view of improving sentiment," he told the Business Times today.
Top actives were Sapura Energy Bhd unchanged at five sen, KNM Group Bhd flat at 12 sen and UEM Sunrise Bhd up one sen to 88 sen.