FBM KLCI Little Changed, Glove Makers Rise

Bursa Malaysia could be seeing some positive spillover from Wall Street markets following the release of a US producer inflation report.

The FBM KLCI opened on a cautious note, barely moved at 1,605.75 as investors stayed on the sidelines while they digested the recent developments in the US.

Overnight, the technology-heavy Nasdaq climbed 0.75% to a new record of 16,511.18 points. The Dow Jones Industrial Average gained 0.32% to 39,558.11 while the S&P500 rose 0.48% to 5,246.68.

While the US producer price index for April came in higher than anticipated by economists, Federal Reserve chair Jerome Powell described it as "mixed" as opposed to "hot", adding that he did not expect the central bank to raise rates at its next meet.

In a word of caution to investors, Apex Securities Research noted there were further developments in the pipeline that could reverse the bullish mood.

"Overall sentiment will remain cautious as investors await the US core consumer price index data tonight and ongoing corporate earnings," it said in its market outlook.

'For the remainder of the week, the market will closely assess key economic data, including US inflation, Malaysia's Q1 2024 GDP, and China retail sales."

Meanwhile, the research firm also anticipated some buying interest in glove counters following the US's implementation of a 25% tariff on surgical gloves from China.

"Additionally, companies with theme of global supply chain diversification will likely see gains amid the intensifying trade war," said Apex.

The world's largest glove maker, Top Glove, responded strongly to the news, jumping six sen to RM1.02 on active trading interest.

Meanwhile, YTL continued to stack on gains to lead the FBM KLCI higher, rising 10 sen to RM3.62, while YTL Power rose 10 sen to RM5.14.