KUALA LUMPUR (July 9): The FBM KLCI opened higher with Asian stock indices today after US equity gauges finished up in overnight trade.

It was reported that US stocks rose yesterday and the Nasdaq hit a record closing high, supported by technology shares as early signs of an economic rebound offset concerns about further lockdowns due to a jump in Covid-19 cases across the country. 

On Bursa Malaysia today, the KLCI opened up 0.44 point at 1,583.94 at 9am before rising 0.8 point to 1,584.30 at 9.02am.

Analysts were, however, mindful of the sustainability of the KLCI's rise today after the index climbed substantially yesterday.

TA Securities Holdings Bhd analysts wrote in a note: "Stocks should pause for a breather as overbought conditions and keen profit-taking interest check recent sharp gains, but rotational interest in small caps should continue to buoy sentiment.

"The local benchmark rose to close at a fresh five-month high on Wednesday, with the telco, transport and technology sectors leading gains on rotational plays, while robust trading momentum of technology-related small caps and ACE Market stocks fuelled daily turnover to hit another record high. The KLCI gained 16.78 points or 1.1% to end at 1,583.50, off an opening low of 1,562.08 and high of 1,584.67, as gainers led losers 687 to 369 on record high daily turnover which totalled 11.8 billion shares worth RM4.35 billion,” they said.

Overnight in the US, it was reported that the Dow Jones Industrial Average rose 177.1 points, or 0.68%, to 26,067.28, while the S&P 500 gained 24.62 points, or 0.78%, to 3,169.94 and the Nasdaq added 148.61 points, or 1.44%, to 10,492.50.

"Apple Inc and Microsoft Corp provided the biggest boosts to the Dow and S&P 500, with the S&P 500 Technology Index up 1.6% and leading sector gains. The Nasdaq outpaced the other two major indices, ending 1.4% higher, led by Amazon.com, its fourth record closing high this month,” Reuters reported.