FBM KLCI momentum to build after weak US labour data
KUALA LUMPUR: The FBM KLCI is expected to build on its momentum from the previous session as weak economic data spurred on the US stock market overnight.

After staging a strong rally yesterday, the key index started 0.59 points lower on Wednesday.

Despite the caution after a strong session of gains, the market is expected to move higher on growing optimism over interest rate cuts in the US this year as a US jobs report showed fewer job openings than expected in May.

"We expect the positive momentum to extend today taking cue from the positive closing on Wall Street, coupled with signs of a return in foreign funds," said Apex Securities Research in a note.

In focus this week is the release of the US non-farm payrolls report on Friday, which would be a key indicator of the rate of inflation in the world's largest economy.

Apex recommends a closer look at logistics counters, particularly freight forwarders, after positive share price momentum was observed yesterday due to higher international ocean freight rates.

"Additionally, we are bullish on the industrial product sector following the improvement in Malaysia's manufacturing PMI data in May 2024.

"The market may avoid O&G counters following the extended dip in oil prices due to concerns over higher supply this year," it added.

Taking an early lead, brewer Carlsberg rose 24 sen to RM19.50 and Dutch Lady gained 20 sen to RM37.20.

Technology counter Vitrox added five sen to RM7.80 while Pentamaster gained four sen to RM4.93.

Top actives were Dnex up one sen to 47 sen, Datasonic up one sen to 51.5 sen and SNS Network gaining 1.5 sen to 67 sen.




Markets,Bursa Malaysia,FBM KLCI,equities,trading,investor,commodity,stocks
KUALA LUMPUR: The FBM KLCI is expected to build on its momentum from the previous session as weak economic data spurred on the US stock market overnight.