Rally resumes on Bursa Malaysia on hopeful sentiment over US trade negotiations

The Malaysian stock benchmark was  mildly positive after a positive showing on Wall Street overnight as traders turned hopeful on news the US was nearing a trade deal with India.

At 9am, the FBM KLC was up 2.51 points to 1,518.07, retracing some of the previous session's loss but capped below the 50-day simple moving average.

According to TA Research, Bursa Malaysia is poised for a rebound today given the growing optimism the US will soon reach a trade agreement with its key partners.

"Immediate resistance is maintained at 1,527, which represents the 50%FR of the rally from the 1,369 low (June 2023) to the 1,684 peak (August 2024), with next upside hurdles seen at the 61.8%FR (1,564) and the 76.4%FR (1,610).

"Immediate support remains at the 23.6%FR (1,444) with stronger supports seen at the 1,400

psychological level, followed by the June 2023 low of 1,369," it said in its technical commentary.

Malacca Securities in its review said the rally could be capped as the domestic market will be closed tomorrow for the Labour Day holiday.

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