KUALA LUMPUR: Bursa Malaysia closed significantly higher, driven by strong buying interest, in line with robust performances across regional markets.
The continued market uptrend was bolstered by persistent foreign buying amid the strengthening of Asian currencies against the US dollar.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 22.95 points or 1.39 per cent to 1,675.24, up from Tuesday's close of 1,652.29.
Despite the rise in the index, the broader market was negative, with 783 decliners outpacing 406 gainers, while 458 counters remained unchanged.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said there was increasing anticipation for the US Federal Reserve to start easing monetary policy.
This followed the Fed chair Jerome Powell's indication on Friday that the central bank was prepared to begin lowering interest rates.
"On the local front, the FBM KLCI closed at its highest level since December 2020. We are optimistic about the mid-term outlook of the market given the improvement in local market sentiment and the return of foreign funds.
"Simultaneously, the ringgit's appreciation against the US dollar to around 4.33-4.34 also played a role in shaping investor sentiment," he said.
Thong noted that with the FBM KLCI trading significantly above both the 20-day and 50-day exponential moving averages (EMAs), it had exited its consolidation phase and was showing strong upward momentum.
"The widening gap between the index and the EMAs indicates a solid uptrend, with resistance at 1,680 and the potential to test 1,700," he added.