KUALA LUMPUR: Bursa Malaysia opened higher on Tuesday morning ahead of the US Federal Reserve's decision on the interest rates.
At 9:16 am, the the FTSE Bursa Malaysia KLCI (FBM KLCI) increased by 3.25 points or 0.2 per cent to 1,627.81, compared to Monday's closing at 1,624.56.
On broader market, 292 losers outpacing 267 gainers, while 367 counters remained unchanged.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng expected the FBM KLCI to rebound after a spate of selling recently.
Although securities buying may be affected by that on Wall Street, he reckoned market undertone should remain positive as the earnings season is coming again.
"As such, we expect the index to hover within the 1,620 to 1,630 range today. "Meanwhile, crude oil price declined as traders unlock their positions in view of lower demand especially from China amid the weakening Chinese economy as the Brent crude dipped to US$79.78 per barrel," he added.
On US stock exchange, Thong said Wall Street ended on a flat note due to traders bracing themselves for slew of corporate earnings from the mega tech companies and policy statement from the Federal Reserve (Fed) over the coming few days.
Meanwhile, Hong Leong Investment Bank (HLIB) Research said FBM KLCI may continue its consolidation in the short term as investors await the Federal Open Market Committee (FOMC) and Bank of Japan (BOJ) policy outlooks, ongoing US corporate earnings and upcoming Bursa's August results season. "Barring a breakdown below the 1,606 to 1,611 support levels, KLCI may continue its upward trajectory towards 1,638-1,650-1,660 after a healthy profit-taking consolidation."
"This is underpinned by Fed's rate-cut pivot, stable corporate earnings and economic growth in Malaysia, planned investments inflow, government reforms,and exuberance in investment themes," the research firm added.