Bursa Malaysia opens higher on Dovish PPI data

BURSA Malaysia opened higher today, taking its cue from the positive Wall Street performance due to the dovish United States (US) Producer Price Index (PPI) data.

At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 2.53 points to 1,436.75 from yesterday’s close of 1,434.22.

The main index opened 0.62 higher at 1,434.84.

Market breadth was positive as gainers surpassed decliners at 167 versus 92, while 233 counters were unchanged, 1,773 untraded and 19 others suspended.

Turnover stood at 222.99 million units worth RM77.74 million.

The US PPI data slid to 2.7 per cent year-on-year in March from 4.9 per cent in February — the lowest reading since January 2021.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said Wall Street advanced as traders cheered the latest PPI data that came in lower than expected, indicating that the inflation in the US may be cooling down.

“We reckon the regional markets to excel today, thus anticipate the local bourse to follow suit and hover in the 1,435-1,445 range today, with buying interest returning to tech-related counters,” he told Bernama.

Meanwhile, among the heavyweights, Maybank and Tenaga Nasional added one sen to RM8.72 and RM9.16, respectively, Petronas Chemicals rose eight sen to RM7.48 and CIMB gained two sen to RM5.22, while Public Bank was flat at RM3.99.

As for the actives, Hong Seng, CSH Alliance and Niche Capital Emas rose by five sen to 13.5 sen, five sen and 17 sen, respectively, My EG earned 1.5 sen to 89 sen while Wellspire declined half-a-sen to 37 sen.

On the index board, the FBM Emas Index expanded 19.10 points to 10,590.52, the FBMT 100 Index added 17.73 points to 10,269.39, the FBM Emas Shariah Index bagged 25.92 points to 10,966.20, the FBM ACE Index was 49.60 points higher at 5,418.79 and the FBM 70 index climbed 22.43 points to 13,946.27.

Sector-wise, the Industrial Products and Services Index perked 0.81 of-a-point to 176.30 and the Plantation Index increased by 7.26 points to 6,884.60 while the Financial Services Index decreased by 21.22 points to 15,766.06 and the Energy Index eased 0.24 points to 886.08. — Bernama