FBM KLCI edges higher in early trade as Wall Street rallies

KUALA LUMPUR: The FBM KLCI edged higher in early trade, tracking overnight gains on Wall Street after the US Federal Reserve cut its key interest rate.

The market barometer rose 1.14 points, or 0.07%, to 1,626.53 at 9.17 am. The index had earlier opened 2.83 points lower at 1,622.56.

Overnight, US stocks climbed toward record territory after the Federal Reserve lowered its key interest rate to bolster the labour market. Expectations for additional cuts in 2026 have also improved.

The Dow Jones Industrial Average jumped 1.34% to 48,704.01, surging past its previous closing record set on Nov 12. 

The S&P 500 added 0.21% to 6,901.00, also breaking its Oct 28 record close. Meanwhile, the Nasdaq Composite slipped 0.25% to 23,593.86.

Berjaya Research Sdn Bhd said the FBM KLCI may see a period of stabilisation following the Fed’s latest rate cut. Expectations of improved liquidity conditions, along with firmer global risk appetite, may help to underpin regional sentiment.

Still, the research house said investors will closely monitor Malaysia’s industrial production and retail sales data, due for release later today, for clearer cues on domestic economic momentum.

“Overall, the key index is likely to trade within a consolidative bias in the near term as the market digests both global policy developments and local macro indicators,” it said, adding that the key index formed a bullish candlestick to firm up its position within the consolidation band.

“Further recovery could propel the key index towards the immediate resistance at 1,630 points, followed by 1,638 points.

“Meanwhile, the near-term supports are located at 1,611-1,606 points,” Berjaya Research said.

On Bursa Malaysia, Negri Sembilan Oil Palms rose nine sen to RM5.85, Tenaga Nasional added eight sen to RM12.82, MBM Resources gained eight sen to RM5.15, and Vantris Energy climbed 6.5 sen to 42.5 sen.

Among the decliners, F&N slid 48 sen to RM34.52, Malaysian Pacific Industries lost 42 sen to RM31.58, United Plantations fell 14 sen to RM28.40, and Country View declined 11 sen to RM2.76.