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Bursa Malaysia opens higher bouyed by Wall Street optimism

KUALA LUMPUR: Bursa Malaysia opened higher today in line with the overnight performance of Wall Street, analysts said.

Wall Street ended in positive territory with both the Nasdaq and S&P recording new highs ahead of the Federal Reserve's (Fed) stance on interest rates this Wednesday.

It is widely anticipated that the Fed will keep the interest rate unchanged at the Federal Open Market Committee (FOMC) meeting.

At 9.20 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) added 1.60 points to 1,615.97, compared to Monday's close of 1,614.37.

The barometer index opened 2.63 points higher at 1,617.00.

Market breadth was positive, with gainers led decliners 312 to 154, with 374 counters unchanged, 1,560 untraded and nine others suspended.

Turnover amounted to 432.30 million units worth RM159.70 million.

Malacca Securities Bhd head of research Loui Low said it was a positive start for the morning session, driven by the ongoing data center theme.

"Eco World selling land to Microsoft could boost opportunities in the property sector. This is likely to benefit property construction and building materials," he told Business Times.

"However, it is likely to stay positive for property construction and building material," he told Business Times.

Rakuten Trade Sdn Bhd vice-president of equity research, Thong Pak Leng said yesterday the FBM KLCI closed lower after struggling to maintain its uptrend amid a mixed regional performance.

The index was dragged down by selling pressure in selected industrial products and utilities heavyweights, while the sentiment weakened after the US nonfarm payroll came in higher than expectations.

"Nonetheless, we noticed that daily volume remains decent at around the 6 billion shares threshold and should improve over time when the buyers return to the smaller cap companies.

"For today, we expect the index to hover between the 1,610-1,620 range and the emergence of bargain hunting activities in the event that the index tests the 1,610 mark," said Thong.

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