KUALA LUMPUR, Nov 15 — Bursa Malaysia rose to more than an eight-month high today as investors anticipated the US Federal Reserve (Fed) to be already done with its rate hike cycle after the October data showed inflation has declined.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 1.04 per cent or 15.12 points to end its intraday high of 1,466.84 compared to yesterday’s closing of 1,451.72.

The index opened 1.89 points higher at 1,453.61, its lowest point today.

Turnover widened to 3.94 billion units valued at RM2.21 billion from Tuesday’s 3.08 billion units valued at RM1.77 billion.

Rakuten Trade equity research vice-president Thong Pak Leng told Bernama that the FBM KLCI managed to break the 1,465 resistance level, supported by strong buying from foreign funds and retail investors, with the market further boosted by China's better-than-expected retail and industrial data.

"The FBM KLCI continued its upward trajectory as investor sentiment improved in tandem with regional bourses.

"Key movers included consumer products, plantation, energy, and banking stocks. Regionally, key indices trended higher following a positive cue from global equities overnight, with strong gains in China's tech and electric vehicle stocks," he said.

China's October retail sales and industrial data outperformed expectations, with retail sales growing by 7.6 per cent year-on-year, surpassing the forecast of 7.0 per cent, while industrial production rose by 4.6 per cent versus estimates of - 4.4 per cent, providing a welcome boost to investor confidence.

In the US, the decline in US bond yields due to an unexpected slowdown in inflation, strengthening the belief that the Fed's aggressive interest rate hiking cycle may be coming to an end.

Additionally, the meeting between US President Joe Biden and his Chinese counterpart Xi Jinping has the potential to enhance the fragile relationship between the US and China, ultimately mitigating the risks associated with geopolitical tensions, Thong said.

"We remain cautiously optimistic on the local stock market, fuelled by its enticing valuations, increasing trading volume, and continuous support from foreign inflow, although we do not discount the possibility of profit-taking activities.

"Should the benchmark index sustain above its 1,465 resistance for an extended duration, we predict further upward potential. The subsequent resistance is spotted at the 1,495-1,500 range, with support remaining at 1,445," he noted.

Among the heavyweights, Mr D.I.Y, AmBank, Genting, and MISC climbed 10 sen to RM1.62, RM3.93, RM4.38 and RM7.32 respectively.

Dialog rose nine sen to RM2.20, IOI was nine sen higher at RM4.02 and Public Bank bagged five sen to RM4.23.

Out of the 30 FBM KLCI components, only Hong Leong Financial Group was in the red, after losing 10 sen to RM17.08.

Of the actives, Hong Seng eased one sen to 4.0 sen, Leform was two sen higher at 27.5 sen, newly-listed Plytec dropped 2.5 sen to 32.5 sen, while Widad was flat at 46 sen.

On the index board, the FBM Emas Index surged 102.47 points to 10,832.06, the FBMT 100 Index jumped 101.71 points to 10,493.83, the FBM Emas Shariah Index soared 103.87 points to 11,047.30, the FBM 70 Index rose 110.40 points to 14,288.81, and the FBM ACE Index put on 4.76 points to 5,121.18.

Sector-wise, the Financial Services Index increased 108.45 points to 16,430.10, the Plantation Index advanced 69.19 points to 7,022.23, the Industrial Products and Services Index inched up 1.32 points to 174.56, and the Energy Index perked up 5.94 points to 862.46.

The Main Market volume expanded to 2.56 billion units worth RM1.88 billion compared with yesterday’s 2.03 billion units worth RM1.52 billion.

Warrants turnover swelled to 602.85 million units valued at RM86.80 million from 352.73 million units valued at RM47.07 million yesterday.

The ACE Market volume improved to 783.52 million shares worth RM236.45 million from 681.64 million shares worth RM199.53 million previously.

Consumer products and services counters accounted for 322.79 million shares traded on the Main Market, industrial products and services (544.56 million); construction (83.98 million); technology (872.33 million); SPAC (nil); financial services (69.19 million); property (179.28 million); plantation (48.27 million); REITs (6.56 million), closed/fund (14,900); energy (100.94 million); healthcare (80.62 million); telecommunications and media (31.52 million); transportation and logistics (87.28 million); and utilities (128.23 million). — Bernama