Bursa Malaysia opens in profit-taking mode ahead of weekend

KUALA LUMPUR: The FBM KLCI experienced a mild pullback as trading commenced on Friday after a one-day Labour Day holiday, with investors taking profit off strong gains from earlier in the week.

The FBM KLCI slipped 2.8 points to 1,537.42 despite Wall Street’s rally overnight on the back of stronger-than-expected earnings by Meta Platforms and Microsoft.

Nvidia also led a chip rally as Meta and Miscrosoft reaffirmed their AI investment plans.

Back in Corporate Malaysia, earnings results so far have been encouraging, said Rakuten Trade.

The research firm said this is indication Malaysian corporates may be on track to reporting an estimated 16% growth in FY24.

“As such, we expect the index to trend within the 1,535-1,545 range today,” it said in its review.

Malacca Securities Research is optimistic over the upward momentum following six straight trading days of foreign fund inflows.

It also turned its attention to poultry famrers, which is expected to receive a boost to profit after the government removed 50% of its egg subsidy with plans to fully lift the subsidy by Aug 1, 2025.

“Breakouts have been observed in several egg-related counters, including Teo Seng, PWF, Lay Hong and CAB, presenting trading opportunities,” it said in its market commentary.

Meanwhile, Reach Ten made its debut on the Main Market, rising two sen above its initial public offering price to 54 sen after 40.63 million shares done as at 9.17am.