Kuala Lumpur Stock Exchange, or Bursa Malaysia
The FBMKLCI (+0.59%) traded positively, closing with a 5-day winning streak, supported by Banking and Industrial Products and Services heavyweights like MAYBANK (+14.0 sen) and PCHEM (+9.0 sen); likely bolstered by year-end window- dressing activities.
On the global front: Treasuries rallied while Nasdaq continuing to drag Wall Street sentiment as investors reduced their positions in an overstretched valuation environment and rotated into safe-haven assets. Meanwhile, both the European and ASEAN markets closed in negative territory.
The Day Ahead
The local bourse began the week on a positive tone, extending its 5-day winning streak, supported by buying interest in Banking and Industrial Products and Services heavyweights, likely driven by window-dressing activities by funds. Meanwhile, in the US, markets ended lower despite a 2.2% rise in pending home sale, as Technology heavyweights faced selling pressure in recent session due to overstretched movements and valuations. This week, traders will monitor key economic data, including US unemployment claims and the ISM Manufacturing PMI. In the commodities market, Brent crude oil posted marginal gains, ranging around USD73- 74, while gold closed lower around the USD2,600-2610 levels, maintaining a negative bias. CPO prices weakened to below RM4,600.
Sector Focus: Despite the negative sentiment in the US, window-dressing activities are expected to lift KLCI on the year's final trading day. The land deal between GAMUDA and MUIPROP will spur buying interest in the Property and Construction sectors. Furthermore, the data center theme continues to see strong momentum and Malacca Securities said it remains optimistic within the Building Material, Technology, and Utilities sectors.