FBM KLCI hits 2-month high on foreign funds

by ANIS HAZIM / Pic by TMR

THE persistent buying from foreign funds has pushed the FTSE Bursa Malaysia KLCI (FBM KLCI) to almost a two-month high, says Rakuten Trade Sdn Bhd.

Rakuten head of research Kenny Yee said that the FBM KLCI closed broadly higher in tandem with positive performance among the regional markets.

“As market undertone improves, we reckon the benchmark index may look to test the 1,500 thresholds today,” he said in a report on Friday. 

In the morning, the benchmark FBM KLCI was 3.6 points higher at 1,494.74 compared to Thursday’s close of 1,491.2.

Crude palm oil rebounded to RM3,960 per tonne with the Brent crude advanced to US$107.10 (RM476.39) per barrel as supply remains tight.

Meanwhile, Wall Street continued with its uptrend despite disappointing US GDP data as traders looked beyond recessionary fears, and that the Federal Reserve will not be as aggressive in raising rates moving forward.

“The Dow Jones Industrial Average rose 332 points while the Nasdaq closed 130 points higher as the US 10-year yield receded at 2.67%,” he noted.