KUALA LUMPUR: Technology stocks are in focus on Wednesday following the US Nasdaq's record-topping performance on the back of Nvidia's price surge.
The tech-heavy Nasdaq topped the 17,000 level for the first time overnight, lifted by optimism over Nvidia since it announced an earnings beat and stock split last week.
At the start of Wednesday trading, Bursa Malaysia's technology index opened on a flattish note, rising just 0.04% to 73.58 as investors stayed cautious amid the ongoing results period.
There was also some bargain-hunting lifting the sector as local tech stocks had lost nearly 1% in the previous day's trading on profit-taking from a five-week long rally.
Going by the investor sentiment, local tech stocks are set to outperform the benchmark index, which started the day's trading in the red. The FBM KLCI was down 1.11 points to 1,614.71, extending the negative sentiment after three consecutive days of losses.
Maybank was one of the leading laggards, sliding six sen to RM9.93, while Axiata dropped six sen to RM2.78 and Tenaga Nasional shaved eight sen to RM13.18.
Apex Securities Research has forecast that the FBM KLCI will continue to trend sideways as investors monitor the corporate earnings releases being released this week, while trading in lower liners might also take a pause.
However, the research firm did express confidence over the technology sector mirroring the gains on the Nasdaq in Wednesday trading.
On the economic front, fresh catalysts may come in the form of reports to be released in the EU and the US this week, which could offer further signals as to the direction of central banks' next monetary decision.
"Economically, investors will be monitoring EU’s consumer confidence and unemployment rate as well as US’s 1Q24 GDP estimate to be release this Thursday," said Apex in its market review.
