KUALA LUMPUR: Malaysian equities rose in early trade on Thursday, tracking a broad rally across global markets as falling oil prices following the Democrats' victory in the US midterm elections raised hopes of progress towards ending the conflict in the Middle East.
The benchmark gained 13.90 points, or 0.86%, to 1,630.46 at 9.27am, supported by buying interest in banking and selected transport stocks.
Brent crude futures for January delivery fell 8.7% overnight to US$94.62 a barrel, its lowest level in two months, amid expectations that a Democrat-controlled Congress could support diplomatic efforts to resolve the conflict with Iran.
AmBank Research said the election outcome could also constrain further US tax cuts and government spending, potentially easing concerns over federal borrowing requirements and additional Treasury issuance.
It added that tighter regulation of the artificial intelligence sector could moderate US growth and inflationary pressures associated with AI-related investments, reducing the likelihood of further interest rate increases.
Locally, investors were also awaiting Bank Negara Malaysia's overnight policy rate decision later on Thursday. Most economists expect the central bank to maintain the current rate, with attention focused on its monetary policy guidance for 2027.
Among blue-chip stocks, Maybank gained 16 sen to RM10.06, Hong Leong Bank rose 26 sen to RM21.50, while RHB Bank added seven sen to RM7.80. AmBank advanced 16 sen to RM6.64 and CIMB climbed 12 sen to RM7.03.
Nestle Malaysia rose RM1.88 to RM95.38 sen, while Capital A added two sen to 25 sen.
Energy stocks weakened alongside crude oil prices, with Hengyuan Refining falling 35 sen to RM3.27, Hibiscus Petroleum losing 11 sen to RM1.95 and Petron Malaysia declining 11 sen to RM3.14.