KUALA LUMPUR: The FBM KLCI started the day on a positive note with higher opening levels, but the momentum quickly faded, leading the index to drift lower.
The FBM KLCI fell 1.98 points, or 0.12% to 1,676.82 at 9.17 am. The benchmark index opened 1.56 points higher at 1,680.36.
There were 302 gainers, 267 losers and 319 counters traded unchanged on the Bursa Malaysia.
Inter-Pacific Research noted that despite rising volatility, market conditions are expected to remain relatively stable, with buying support from foreign funds helping to keep the FBM KLCI near its 4-year highs.
“The market is now buoyed by expectations that the Federal Reserve could start its long-awaited interest rate reduction cycle this month and this may keep Malaysian equities steady heading into the new month,” it said.
Therefore, the research house said the key index may maintain its momentum and make additional gains in the near term, supported by improved sentiment in the equities market.
“Still, with conditions already toppish, and with the results reporting season coming to an end, the upsides could become more gradual with the 1,680-1,685 levels to become the immediate hurdle, followed by the 1,690-1,695 levels.
“On the downside, there is support at the 1,672 level, followed by the 1,658 level,” Inter-Pacific said.
Meanwhile, Apex Securities anticipates market sentiment will improve following August's heavy selling.
It noted that the end of the local corporate earnings season is expected to reduce volatility and further support this positive trend.
“Currently, we favour the technology and utilities sectors, expecting improved sentiment and bargain hunting, as these sectors are well-positioned for bottom fishing.
“Conversely, we anticipate some selling pressure in oil and gas stocks due to the decline in international oil prices amid expectations of rising supply,” Apex said.
Among the decliners on Bursa Malaysia, Nestle tumbled RM2.60 to RM103.40, Malaysian Pacific Industries
fell RM1.10 to RM28.50, SAM Engineering lost 63 sen to RM4.72 and Kuala Lumpur Kepong declined 16 sen to RM21.60.
F&N rose 48 sen to RM30.38, Dutch Lady added 36 sen to RM30.48, Hong Leong Financial Group gained 30 sen to RM19 and BAT advanced 19 sen to RM7.99.
