Post by : Meena Ariff

Bursa Malaysia closed higher today, continuing its upward trend as strong buying interest in selected heavyweight counters provided support to the local market. This positive development came even as other regional markets remained cautious, influenced by weak signals from the United States.

At the close of trading, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 5.28 points, or 0.33 per cent, to settle at 1,590.24. This was higher than Monday’s close of 1,584.96. The index had started the day on a stronger note at 1,587.43 and traded within the range of 1,584.62 to 1,594.40 throughout the session.

The broader market reflected a mixed but overall positive performance. A total of 503 counters advanced, 489 declined, while 510 remained unchanged. Meanwhile, 1,084 counters were untraded, and six counters remained suspended. Market turnover improved to 2.60 billion units worth RM2.74 billion compared with 2.54 billion units worth RM2.72 billion in the previous trading day.

Regional Markets Show Weakness While Malaysia Stays Firm

Most regional stock markets in Asia closed weaker today. Market experts explained that the downturn came mainly from profit-taking activities, following a negative lead from Wall Street overnight. Investors across the region are currently holding back, waiting for clearer policy directions from the United States Federal Reserve.

The Federal Reserve’s annual Jackson Hole symposium, scheduled for Aug 21–23, is expected to provide important hints about future interest rate movements. Many investors prefer to wait for these signals before making fresh commitments in the market, which explains the cautious approach in neighbouring markets.

In contrast, the Malaysian market showed resilience. The FBM KLCI not only managed to hold steady but also pushed higher, surpassing the important resistance level of 1,585. Analysts pointed out that this was a strong sign of market strength, as the index has now returned to levels last seen in early 2025.

This upward momentum has raised hopes that the FBM KLCI could soon test the 1,600 level, which is seen as a key psychological mark. If the positive momentum continues, there are even expectations for the index to move further towards 1,640 in the medium term.

Local Sentiment Strengthens, Institutions Show Support

Market analysts noted that local sentiment is improving steadily. In particular, domestic institutional investors appear to be returning to the market with renewed buying interest.

Recent data suggests that institutions are shifting their focus towards sectors closely linked to domestic economic activity. Property and consumer-related counters have seen stronger participation as these sectors are viewed as beneficiaries of stable household demand and improving domestic growth.

The confidence of local institutions is seen as a vital factor in sustaining the market’s current upward path. Analysts believe that if this institutional support continues, and if external risks such as global geopolitical tensions ease, the FBM KLCI stands a good chance of not only crossing but also staying above the 1,600 level.

Property, consumer, and energy-linked counters are expected to remain the main drivers in the near term, with energy stocks gaining particular attention due to steady demand and global oil price trends.

Heavyweight Stocks Provide Key Support

Among the heavyweight stocks that supported the market today:

• Maybank added 2 sen to RM9.80

• Tenaga Nasional climbed 10 sen to RM13.72

• CIMB Group gained 6 sen to RM7.39

• IHH Healthcare rose 3 sen to RM6.85

• Public Bank remained unchanged at RM4.46

The steady performance of these heavyweights was a major factor in lifting the benchmark index. Gains in Tenaga Nasional and CIMB in particular added significant points to the FBM KLCI.

Most Active Counters

Among the actively traded counters, market performance was mixed:

• Velesto Energy added half a sen to 19 sen

• Tanco Holdings eased half a sen to 73 sen

• Zetrix fell 3.5 sen to 86.5 sen

• Genetec Technology declined 6 sen to 56.5 sen

• TWL Holdings remained flat at 2.5 sen

Separately, trading in the securities of Pestec International Bhd was temporarily halted between 3.01 pm and 4.01 pm today. Bursa Malaysia announced that trading in the company’s shares and warrants will remain restricted from direct business transactions until 10 am on Wednesday, Aug 20, under Trading Rule 10.10(1).

Sectoral and Index Performance

The performance of other indices across the market also reflected the positive sentiment:

• The FBM Emas Index increased by 33.61 points to 11,812.41

• The FBMT 100 Index rose 35.06 points to 11,597.65

• The FBM Emas Shariah Index added 37.77 points to 11,731.40

• The FBM 70 Index climbed 35.40 points to 16,709.97

• The FBM ACE Index slipped slightly by 4.53 points to 4,709.69

By sector:

• The Financial Services Index advanced 55.13 points to 18,185.50

• The Plantation Index gained 11.72 points to 7,546.48

• The Industrial Products and Services Index edged up 0.77 of a point to 159.12

• The Energy Index increased 11.87 points to 750.22

These sectoral performances reflect renewed investor interest in financial, energy, and plantation counters, while the industrial products index saw only marginal improvement.

Market Turnover by Segments

Trading volume was spread across various market segments:

• The Main Market turnover increased to 1.49 billion units worth RM2.51 billion, up from 1.39 billion units worth RM2.47 billion the previous day.

• Warrants turnover jumped to 732.43 million units worth RM101.91 million, compared with 694.21 million units worth RM98.99 million previously.

• The ACE Market volume, however, fell to 375.68 million units worth RM134.87 million, down from 459.40 million units worth RM150.63 million yesterday.

In terms of sector contributions on the Main Market:

• The property sector recorded 219.62 million shares traded

• Technology counters saw 214.04 million shares exchanged

• Consumer products and services reached 223.04 million shares

• Industrial products and services reported 213.61 million shares

• The energy sector registered 161.39 million shares

• Financial services contributed 82.87 million shares

• Healthcare counters stood at 61.74 million shares

• Plantation counters contributed 20.82 million shares

• The utilities sector accounted for 39.39 million shares

• Other areas, such as telecommunications, construction, and logistics, added steady but smaller volumes.

Outlook for Bursa Malaysia

Looking ahead, Bursa Malaysia continues to demonstrate resilience despite the cautious global environment. The main focus now is whether the FBM KLCI can maintain its momentum and push firmly beyond the 1,600 psychological level in the days to come.

Much will depend on continued support from domestic institutions, strength in household spending, and external market developments. In particular, investors will be watching closely for signals from the Federal Reserve during the upcoming Jackson Hole meeting, which could influence global fund flows.