KUALA LUMPUR: Bursa Malaysia opened higher today, buoyed by strong momentum in the US markets, which closed at record highs last night following benign inflation data, analysts said.
Wall Street closed on record highs spurred by lower than expected consumer price index (CPI) and retail sales for April thus re-igniting hopes that the US Federal Reserve (Fed) will cut rates in the near future.
At 9.05am, the FBM KLCI added 0.53 of-a-point or 0.11 per cent to 1,606.41 against yesterday's close of 1,605.88.
The barometer index opened 0.13 of-a-point easier at 1,605.75.
In the broader market, gainers led decliners 229 to 141, while 327 counters were unchanged, 1,671 untraded and 23 others suspended.
Turnover amounted to 311.67 million units worth RM149.0 million.
Tradeview Capital Sdn Bhd fund manager Neoh Jia Man said almost all sectors on Bursa Malaysia, except for transportation and plantation, posted gains.
"With the likelihood of the Fed rate cuts this year becoming clearer, we expect the local market to trend upwards today," he told Business Times.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said FBM KLCI ended in negative territory yesterday as sellers emerged ahead of the economic data from the US.
"Nonetheless, we expect an uptick in the index emanating from Wall Street's strong closing overnight hence anticipate the index to hover between the 1,605-1,615 range today.
"Trading on rubber glove stocks took the limelight yesterday buoyed by the US tariff imposition on Chinese goods which will only take effect in 2 years.
"Therefore, we see yesterday's euphoria as only a knee jerk reaction and advocate investors to be vigilant," he added.