KUALA LUMPUR: An opportunity for further profit-taking presented itself on the domestic market as Wall Street retreated overnight ahead of the Jackson Hole Symposium on Friday.
After snapping a seven-day winning streak yesterday, the FBM KLCI continued to exhibit selling pressure on Wednesday by opening 1.05 points weaker at 1,641.72.
The raft of corporate results that are due to be released over the coming days are keeping investors on their toes, although any declines on the market are expected to be cushioned by an overall positive mood over the country's economic performance.
The technical charts are also offering support for a more optimistic view as the readings on the key index remained positive, said Malacca Securities Research.
The research firm said the MACD histogram was forming another positive bare while the relative strength index continued to rend above 50 points.
"The resistance is envisaged around 1,657-1,662 and the support is set at 1,622-1,627," it added in its review.
On the local sectors, Malacca Securities said the slight pullback in US markets could put pressure on local technology stocks.
Additionally, the stronger ringgit could dampen interest in local tech companies.
"Attention may shift to the consumer, building
material, construction, property, renewable energy, and shipping sectors, given expectations of steadier earnings ahead of corporate results.
"Besides, the Monkeypox situation may be monitored for potential trading opportunities within healthcare stocks," it said.
Blue chips facing some selling pressure included Tenaga Nasional down 12 sen to RM13.88, YTL Power sliding seven sen to RM3.77 and PPB dropping eight sen to RM14.42.
The top traded shares on the market were Cape EMS down one sen to 39 sen, MYEG up three sen to 93.5 sen and Wentel unchanged at 33.5 sen.
