KUALA LUMPUR: The FBM KLCI reversed its strong start and fell into negative territory by midday as market momentum shifted and selling pressure increased.
At the lunch break, the market barometer was down 3.05 points, or 0.18%, at 1,665.77, after reaching an intra-morning high of 1,671.62. The index opened 1.09 points higher at 1,669.91 this morning.
There were 418 gainers, 541 losers and 510 counters traded unchanged on the Bursa Malaysia. Turnover stood at 2.04 billion shares valued at about RM1.6bil.
Hong Leong Industries, the top gainer on Bursa Malaysia, jumped 34 sen to RM13.78. Dutch Lady
added 28 sen to RM31.28, F&N gained 18 sen to RM30.46 and PIE Industrial rose 13 sen to RM5.29.
Affin Bank rose 13 sen to RM3 with 6.06 million shares traded on news that an announcement regarding the finalisation of the Sarawak government's acquisition of a majority stake in the bank is anticipated within the week.
Among the losers, Nestle slid 90 sen to RM100.90, PETRONAS Dagangan fell 64 sen to RM18.32, Malaysian Pacific Industries lost 30 sen to RM27.30 and Hong Leong Financial Group declined 22 sen to RM19.20.
Malacca Securities anticipates increased interest in emerging markets, suggesting that foreign funds may invest in Malaysian equities.
The firm also believes that investors will focus on small-cap and lower-liner stocks, which have been significantly oversold in recent weeks.
“Additionally, we believe a strong ringgit will benefit domestic sectors such as construction, consumer, utilities, financials, and automotive.
“We also foresee more trading opportunities in the property sector, particularly around data centre development and the Johor-Singapore Special Economic Zone, following the King’s return to Malaysia after a four-day visit to China,” it stated.
Meanwhile, Hong Leong Investment Bank Research said the FBM KLCI may sustain its upward trend towards short-term resistance levels of 1,684 to 1,700, with support expected between 1,638 and 1,655. This outlook reflects positive sentiment from the Fed's pivot and the US soft landing narrative.
Additionally, the strength of the RM and the upcoming Invest Malaysia event on September 26 contribute to this trend.
“However, further rally will depend on insights from the upcoming Budget 2025 (to be tabled on Oct 18), which aims to drive growth with fiscal stability, strong progressive policies, reforms, and effective execution,” HLIB said.
