KUALA LUMPUR: The rally in global equities is expected to continue, with the positive momentum spilling into domestic equities and lifting the local bourse.
US stock markets remained on a bullish path following the release of the October producer price index, which fell unexpectedly by the largest margin since April 2020.
Apex Securities, in its market note, said the bullish momentum on Bursa Malaysia will also be supported by the strengthening of the local currency and upbeat economic data from China.
Reviewing the technical charts, the research firm said the FBM KLCI formed another bullish candle as it broke through the resistance of 1,465 in the previous session.
"Indicators stayed positive as the MACD Line hovered above the Signal Line, while the RSI maintained above 50.
"The key index may charge higher towards the next resistance is located at 1,494-1,504. Support is pegged around 1,435," it said in a note.
At the open, the FBM KLCI was down 2.06 points to 1,464.78 as investors erred on the side of caution by taking some profit off the table.
The tentative start by investors could also be owing to the raft of corporate earnings that are scheduled for release over the next two weeks, as well as the announcement of Malaysia third-quarter gross domestic product on Friday.
Leading the pullback was bank stocks, including Maybank falling five sen to RM9.09, Public Bank dropping two sen to RM4.23, CIMB shedding four sen to RM5.76 and RHB sliding one sne to RM5.63.
However, there were some positive starts following the previous day's earnings announcements.
Amway surged 36 sen to RM5.61, Kossan climbed 11 sen to RM1.59 and Crescendo jumped eight sen to RM1.47
Other glove stocks also rallied around Kossan's improved earnings.
Top Glove was the top traded share, rising 2.5 sen to 77.5 sen while Hartalega
added five sen to RM2.40 and Careplus gained one sen to 28.5 sen.
