The FBM KLCI has hit a 44-month high above the 1,660 level driven by strong performance in financial services stocks.
The FTSE Bursa Malaysia KLCI Index (KLCI) rose by 0.79%, reaching 1,665.46 points, marking a new high since December 2020, when it closed at 1,662.74.
The local market's surge came despite a weak trend in Asian markets, following moderate gains on Wall Street.
Major companies in the financial sector such as Maybank, Public Bank, CIMB, and Tenaga Nasional saw significant gains, boosting the index.
According to Thong Pak Leng, Vice President of Equity Research at Rakuten Trade Sdn Bhd said the positive sentiment in the Malaysian market is due to increased corporate earnings, a robust economy, increased construction projects (especially in data centers) and a stronger ringgit.
However, overall market sentiment remains cautious as the number of individual investors' participation is still moderate.
Active trading volume and positive performance of cap stocks suggest sustained accumulation, although interest in small-cap stocks has waned.
With recent IPOs raising over RM2 billion in the first half of 2024, the market expects volatility in the index especially as the third quarter earnings season unfolds.
