KUALA LUMPUR: The FBM KLCI opened higher on Monday, supported by gains in PETRONAS-linked stocks, although lingering geopolitical uncertainties and elevated bond yields kept the broader market mood cautious.

The market barometer rose 2.41 points, or 0.14%, to 1,674.03 at 9.19 am, after opening 0.93 of a point higher at 1,672.55.

PETRONAS-linked stocks were among the early gainers, with PETRONAS Dagangan up 14 sen to RM19.64 and PETRONAS Gas adding 10 sen to RM17.50.

Other gainers included Hong Leong Financial Group, which rose 18 sen to RM18.90, Genting Plantations, up eight sen to RM6.07, and PPB Group, which gained eight sen to RM9.41.

In contrast, technology and semiconductor stocks were among the top decliners, with Inari Amertron

down 12 sen to RM2.54, UWC falling 14 sen to RM6.74, KESM losing 11 sen to RM4.08 and ViTrox shedding six sen to RM9.85.

Berjaya Research Sdn Bhd expects the FBM KLCI to attempt to stabilise following its recent weakness, supported by the US$30bil reciprocal tariff reduction agreement signed during Chinese President Xi Jinping’s visit to Washington over the weekend.

However, persistent geopolitical uncertainties after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, coupled with elevated bond yields and potential inflationary pressures, could continue to cap near-term upside.

“Investors should also monitor Malaysia’s upcoming PPI data, particularly for signs of sustained cost pressures following the sharp increase in producer prices earlier this year, which could influence inflation expectations and the outlook for domestic monetary policy.

“Under the prevailing weakness, the key index could remain volatile over the near term, with the immediate resistances located at 1,678-1,690 points. The supports remain at 1,660 points, followed by 1,655 points,” the research house said.

Berjaya Research expects the broader market to remain choppy amid a lack of fresh domestic catalysts. Nevertheless, elevated oil prices could spur greater trading interest in oil and gas stocks today.

Meanwhile, Rakuten Trade said trading remained choppy, although daily volume rose to more than four billion shares.

“In the absence of fresh catalysts, we expect the index to hover between 1,710 and 1,720 today,” it said.