KUALA LUMPUR: Bursa Malaysia closed above the 1,630 points level Wednesday, as traders joined a global rally on expectations for a rate cut in September.
At 5pm, FTSE Bursa Malaysia KLCI was up 0.47 per cent or 7.58 points to 1,633.54 versus Tuesday's close of 1,625.96.
The broader market saw gainers led losers 770 to 445 losers while 513 counters were unchanged.
The turnover was at 5.284 billion shares valued at RM3.88 billion.
The 48-stock Bursa Malaysia Construction Index closed 3.61 per cent higher today at a seven-year high as investors mopped up constructions stocks ahead of expected critical infrastructure spending.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said Malaysian equities finished higher, joining a global rally as expectations that the US Fed will soon cut rates fueled a rush into riskier market segments.
He added that key regional indices were also in positive territory with optimism that the Fed will cut rates soon, as US retail sales data showed resilience among consumers, fueling hopes for a soft landing.
"On the home front, our positive sentiment towards the local market is fueled by attractive valuations, rising investor confidence, and robust foreign buying. "The FBM KLCI has broken the 1,630 resistance level, and should it hold above this level for an extended period, we predict additional upward potential. The subsequent resistance is expected in the range of 1,650-1,660, with support remains at 1,610," he said.
Malacca Securities said FBM KLCI ended on positive note as the index was lifted by buying pressure in telecommunications and media as well as financials heavyweights.
The research firm said the positive moment is drive by improved sentiment, tracking the overnight gains from the US as the US retail sales came in stronger than expectations.
"On the broader market, the construction sector was the best performing sector led by Gamuda Bhd and IJM Corporation Bhd, while the energy sector declined the most," it said.