Tynkr Lab wrote a post · Nov 25, 2024 19:47

Banking Stocks Propel FBM KLCI Higher Amid Renewed Optimism

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CIMB and Public Bank lead gains, lifting the index by 7.67 points to 1,597.45

$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ ended the day at 1,597.45, up 7.67 points or 0.48%, buoyed by gains in banking heavyweights. $CIMB (1023.MY)$ and $PBBANK (1295.MY)$ added a combined 5.21 points to the index, with $CIMB (1023.MY)$ rising 16 sen to RM8.38 and $PBBANK (1295.MY)$ gaining 7 sen to RM4.45. The benchmark index briefly breached the 1,600 level during trading but retreated slightly due to last-minute profit-taking.

Mixed Sentiment in the Broader Market

Despite gains in $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$, the broader market remained mixed. Decliners outnumbered gainers 540 to 501, while 479 counters were unchanged. Total turnover increased to 3.01 billion shares valued at RM5.4 billion, reflecting heightened trading activity compared to last week. Active counters such as $SUNWAY (5211.MY)$, $YTL (4677.MY)$, and $MAXIS (6012.MY)$ recorded minor gains, while $CNASIA (7986.MY)$ eased marginally.

Sectoral Performance Highlights Strength in Financial Services

$Bursa Finance Services (0010I.MY)$ surged 251.96 points to 19,289.03, making it the top-performing sector. Gains were also observed in $Bursa Utilities (0065I.MY)$, with $Bursa Energy (0061I.MY)$ rising 9.36 points to 829.48. However, $Bursa Plantation (0025I.MY)$ dropped 36.87 points to 7,501.65, reflecting weaker performances in agriculture-related counters.

Regional Market Trends Add to Optimism

Asian markets showed mixed results, with Japan’s $Nikkei 225 (.N225.JP)$ climbing 1.3% and South Korea’s $Korea Composite Index (.KOSPI.KR)$ rising 1.32%. Meanwhile, Hong Kong’s $Hang Seng Index (800000.HK)$ fell 0.41%, and China’s blue-chip $CSI 300 Index (000300.SH)$ declined 0.46%, reflecting lingering concerns over geopolitical risks and global economic uncertainties.

Investors return to equities as financial and utility stocks rebound after corrections

Key Market Drivers and Investor Sentiment

Investors showed renewed interest in equities following recent price corrections, particularly in $Bursa Finance Services (0010I.MY)$ and $Bursa Utilities (0065I.MY)$ stocks, which are perceived as more resilient. The rebound in these sectors followed last week’s profit-taking, driven by expectations of strong earnings results. However, geopolitical risks, such as the Ukraine-Russia conflict and potential U.S. trade policy changes, continue to weigh on sentiment.

Trading Volume Across Market Segments

The Main Market volume advanced to 1.85 billion shares worth RM5.16 billion, indicating robust activity. $FTSE Bursa Malaysia ACE Index (.FBMMES.MY)$ also saw an uptick in trading, with 424.15 million units worth RM150.72 million changing hands. Warrants turnover, however, declined slightly to 737.63 million units.

Bursa Malaysia expected to trade in a tight range above 1,590 amid cautious optimism

Outlook: Consolidation Above Key Levels Likely

Bursa Malaysia’s resilience above 1,590 reflects cautious optimism among investors. With the corporate earnings season nearing its conclusion, market participants will likely focus on global economic trends and domestic policy updates. The index is expected to trade within a tight range, with 1,600 remaining a critical psychological level in the short term.

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