FBM KLCI Makes Gains Ahead of Budget Reveal, Re-Captures 1,640 Level

With a swift shift in sentiment the FBM KLCI closed on a positive note today, defying the downward trend experienced by its regional counterparts. As market participants' eyes are on the upcoming Budget 2025 announcement, optimism seems to be coursing through local investors, reflected in the key stock index's performance.

The FBM KLCI finished the trading session up by 8.81 points, a 0.54% increase to close at 1,641.44. This rally was supported by a broad-based advancement in the market with 16 counters closing higher, while 11 counters experienced declines and 3 remained steady. This positive market breadth indicates a robust buying sentiment across the board.

The gainers' list featured some prominent names led by Sunway Berhad (1.82%), Public Bank Berhad (1.79%), and Sime Darby Berhad (1.68%). On the flip side, the decliners' table saw Maxis Berhad (-2.63% ), YTL Corporation Berhad (-2.17% ), and Genting Malaysia Berhad (-2.15%) as the 3 largest fallers on the index. These movements suggest a shift in investor preference, perhaps aligning their portfolios in anticipation of the fiscal policies that will be outlined in the upcoming budget.

In the currency exchange realm, the Malaysian ringgit saw a depreciation, falling 0.4% to a rate of 4.3140 against the US dollar. This move might be tied to broader regional economic dynamics as currencies often react to investor sentiment and macroeconomic indicators.

Looking beyond Malaysian borders, the downward trend in the stock markets was evident across the region. Japan's Nikkei 225 saw a fall of 0.69%, while Hong Kong's Hang Seng Index closed 1.02% lower. South Korea's Kospi saw a marginal decline of 0.04%. The negative sentiment was echoed in China as well, where the CSI300 Index closed down by 1.13% after earlier starting the day in bullish fashion.

The FBM KLCI's ability to buck the regional trend might be suggestive of investors’ confidence in the Malaysian economy's resilience or their expectations of positive developments from Budget 2025. As the announcement approaches, all eyes will indeed be on the policy directions and economic measures that will be introduced, which could further steer the market movement in the coming days.