KUALA LUMPUR: The extended rally in US equities gave Bursa Malaysia a mild boost even as confidence over the Middle East ceasefire had waned following Israel’s latest strikes on Lebanon.
While hopes of a de-escalation remain, the ongoing negotiations remain fragile and at risk of falling through given the heightened rhethoric between the countries’ leaders.
“Any renewed disruption could tighten global energy supply and heighten market volatility. Against this backdrop, regional markets are expected to trade defensively, with investors closely monitoring Israel-Lebanon tensions, US–Iran negotiations, and developments in the Strait of Hormuz,” said Apex Research in its morning note.
It said immediate downside risk on the FBM KLCI has pivoted to the next support at 1,665 after it failed to hold on to gains in the previous session. “A break below this level would reinforce bearish momentum and indicate sustained downward pressure in the near term,” it said.
The FBM KLCI commenced trading on Friday 5.23 points higher at 1,677.31, tracking the positive performance on Wall Street as investors held on to hope of progress in de-escalation measures.
There was some cautious gains in financial heavyweights including Maybank, up six sen to RM11.22, RHB rising eight sen to RM8.08 and CIMB adding five sen to RM 7.50.
IHH slipped 11 sen to RM8.72, PETRONAS Dagangan fell 46 sen to RM20.94 and Nestle shed 60 sen to RM99.50.
In regional indices, Japan’s Nikkei rose 1.47% to 56,721 and South Korea’s Kospi gained 1.86% to 5,885.
Brent crude futures hovered near US$97 a barrel after spiking overnight to as high as US$99.50.