KUALA LUMPUR: Bursa Malaysia fell in early trade Thursday as investors took profits, following a sharp rise in the previous session.
The FBM KLCI fell 2.46 points, or 0.15% to 1,623.11 at 9.24 am. The index opened 0.3 of a point higher at 1,625.87 this morning.
Inter-Pacific Research believes the market might remain positive because the Fed Chairman hinted strongly at an interest rate cut in September, which could keep market sentiment strong in the near term.
“As a result, there should be further near-term upsides among FBM KLCI constituents as market players could also buy into the higher probability of the interest rate cut which is widely seen as a panacea for a pickup in global demand and bolster Malaysian exports in due course,” it said.
Inter-Pacific noted that if the positive trend continues, the key index might next aim for 1,631 points and then attempt to break through the 1,637-1,638 resistance levels, which are recent highs.
“On the downside, the immediate support is at 1,620 points, followed by the 1,617 points respectively,” it said.
On Bursa Malaysia, Dutch Lady
lost 30 sen to RM31.20 while PETRONAS Gas lost 24 sen to RM17.96.
PPB Group, Apollo Food and Eurospan fell 10 sen each to RM14.72, RM6.80 and RM1.55 respectively.
Among the gainers, Malaysian Pacific Industries rose 26 sen to RM37.86, United Plantations added 20 sen to RM26.40, Harrisons gained 15 sen to RM8.80 and Bursa Malaysia climbed 11 sen to RM9.67.
Overnight, the Dow Jones Industrial Average rose 0.24% to 40,842.79, the S&P 500 gained 1.58% to 5,522.30 and the Nasdaq Composite advanced 2.64% to 17,599.40.
Meanwhile, Apex Securities anticipates the FBM KLCI will build on yesterday’s gains as investors cheer on the dovish stance over the interest rate decision from the Fed overnight.
It also expects the lower liners to see improved trading sentiment as bargain-hunting activities emerge.
Apex expects the technology sector to recover, following the gains seen in the Nasdaq overnight.
The research house also recommended that investors consider gold-related stocks due to increased interest in this safe-haven asset, driven by concerns about escalating conflict in the Middle East and the potential for an interest rate cut in September.
