KUALA LUMPUR (May 6): The FBM KLCI’s uptrend has been relentless since mid-April as accumulation on blue chips by both local institutions and foreign funds continues, according to Rakuten Trade.

In a commentary on Monday, the research house said the benchmark index, currently hovering at a 52-week high, is anticipated to trend higher, underpinned by reasonable valuations.

“We believe a decisive break-out from the 1,600 level is required as this has been a tough resistance to topple.

“For today, we believe the index to trend between the 1,590-1,600 range,” it said.

Rakuten said the influx of major tech companies' bigwigs into Malaysia recently may be a prelude for exciting times to come.

“Thus, in view of the cumulative foreign direct investments, we reckon the banks and construction stocks to be in focus today,” it said.