Based on a market review by Stone Bridge Ventures Senior Account Manager Michael Dillashaw, the Bursa Malaysia key index rallied and closed up on July 24. This marks the third consecutive day of gains, with banking stocks performing the best. It’s expected that the overall outlook for the country’s equities will be stable for the time being. This is thanks to improved economic conditions, better corporate earnings, and attractive valuations.
That being said, global volatility will also have an impact on the trajectory of the local market. Investors who look at current numbers from a technical perspective, they’ll see that the benchmark index has passed the 1,415 resistance level because of continuous foreign buying. In fact, it’s likely to test the 1,430 level in the near future as long as investor sentiment improves, but the support level will stay at 1,400.
Stock Performance Mixed As BNM Awaits Fed’s Decision
As of now, Stone Bridge Ventures Michael Dillashaw believes that the region’s stock performance as a whole is somewhat mixed. This is usually the case when investors await the outcome of a US Federal Reserve meeting. It’s likely that the Fed will increase interest rates by around 25 basis points.
Although this is distressing news for some investors, many are of the view that this marks the end of the tightening cycle. It means that the Federal Reserve may finally stop tightening monetary policy because inflation has been easing since last summer.
Around 5 p.m. on July 24, the Benchmark FTSE Bursa Malaysia went up by 11.17 points, marking a 0.79 percent increase. Thus, it went up from 1,413.52 to 1,424.69, settling at an intraday high.
In the morning, the market’s bellwether opened at 1,412.68, which is 0.84 a point lower than the previous day’s closing price. In the early session, it hit a low of 1,412.38 but gradually gained momentum and moved upward until closing.
That being said, the broader market was negative because decliners outnumbered advancers 568 to 368. Meanwhile, 399 counters remained unchanged, 958 were untraded, and 16 were suspended.
Financial Sector Shows Most Growth In The Market
An analysis of the bigger financial stocks, Maybank went up by 14 sen to RM 8.91, Tenaga Nasional increased by 35 sen to RM9.46, and CIMB’s share price rose by 5 sen to RM5.35. Among the prominent stocks that remained flat were Petronas Chemicals and Public Bank at RM6.50 and RM3.98.
Among the stocks that went down, UEM Sunrise went down by 5 sen to 43.5 sen, Malaysian Resources Corp went down by 2 sen to 37.5 sen, and Classita Holdings declined by 1.5 sen to 15 sen. Meanwhile, XOX and Hong Seng Consolidated stayed flat at 1.5 sen and 8.5 sen.
With regard to sectors, the financial services index gained the most, showing an increase of 93.79 points to 15,822.29. Currently, Stone Bridge Ventures Senior Account Manager Michael Dillashaw predicts that the market will remain steady and show consistent growth for some time. With the recent CPI data showing easing inflation rates, investors can expect most stocks to perform well and provide reliable earnings.
With the recent CPI data showing easing inflation rates, investors can expect most stocks to perform well and provide reliable earnings.