Bursa Malaysia returned to gains on Thursday after declining in the previous trading session.
This positive performance was driven by widespread buying activity across most sectors, reflecting investor confidence in the country's economic outlook.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed up 8.43 points or 0.49% at 1,722.19 points.
Throughout the trading session, the index moved within a range of 1,716.76 to 1,726.75 points. Of the total counters traded, 576 stocks recorded gains compared to 550 stocks that declined.
Although trading volume decreased to 3.68 billion shares worth RM2.80 billion, the overall market performance still showed positive sentiment.
According to Rakuten Trade Vice President of Equity Research, Thong Pak Leng, the gradual re-inflow of foreign funds continues to be a catalyst for the local market.
He expects the FBM KLCI to continue to move within the 1,720 to 1,730 point range, supported by selective buying in the banking, plantation and industrial sectors which are seen as still having growth potential.
At the same time, investors are also paying attention to the announcement of Malaysia's Gross Domestic Product (GDP) for the second quarter of 2026 which is scheduled to be announced on Friday.
Analysts expect the country's economic growth to remain above 4%, thus showing that the Malaysian economy is still on a strong track despite facing global economic uncertainties.
Market sentiment also received a boost from developments in the United States. Wall Street closed higher after lower-than-expected producer inflation data and strong financial results from several major banks increased expectations that the Federal Reserve (Fed) will start cutting interest rates by the end of this year.
The development had a positive impact on most regional stock markets, including Bursa Malaysia.
Among the heavyweights that recorded gains were Maybank and Public Bank, while the financial, plantation and industrial sectors were the main contributors to the market's strengthening.
