KUALA LUMPUR: Bursa Malaysia remained in negative territory at the lunch break, as investors exhibited caution amid prevailing market uncertainties.
The FBM KLCI declined 6.06 points, or 0.37% to 1,654.03. The index earlier slipped to its intra-morning low of 1,653.40.
In the broader market, losers outnumbered gainers with 604 stocks ending lower and 399 stocks finishing higher. Volume was 2.32 billion shares valued at RM1.25bil.
Hong Leong Investment Bank (HLIB) Research HLIB expects KLCI to sustain its uptrend towards major resistance levels of 1,684 to 1,700.
This outlook is supported by the Fed's pivot and the narrative of a US soft landing, along with China's sweeping stimulus measures, ringgit appreciation, and political stability.
Additionally, progressive domestic reform initiatives and improved economic growth and earnings delivery contribute to this positive outlook.
“However, the relief rally from 1,529 (Black Monday on Aug 5) may stall (support: 1,638-1,647-1,663) as investors weigh continued profit taking liquidation by foreigners (potential rotation to China/HK markets following its huge stimulus), more insights from the upcoming Budget 2025 and rising geopolitical tensions in Middle East,” HLIB Research said.
Meanwhile, Malacca Securities said traders will closely watch the ISM manufacturing PMI, non-farm payroll, and unemployment claims this week.
“Additionally, we expect the impact of China’s stimulus packages to offer limited upside, following last week’s strong surge. In the commodities market, Brent crude traded around US$72 as China's stimulus measures offset planned OPEC+ supply increases,” it said.
The research house noted that domestically-driven sectors like consumer are expected to benefit from the stronger ringgit, while export-oriented sectors such as gloves and technology may see limited upside.
“The construction, property, building materials, and utilities sectors are likely to gain momentum from data centre developments and Johor-themed catalysts in the near term.
“We believe investors may begin positioning within these sectors ahead of Budget 2025,” Malacca Securities said.
Among the losers, Nestle tumbled RM1.90 to RM103.10, Hong Leong Financial Group lost 52 sen to RM19.44, PPB Group slid 28 sen to RM14.70 and Hong Leong Bank fell 26 sen to RM21.58.
Conversely, Genting rose 16 sen to RM4.28, Guan Chong added 14 sen to RM3.03, United Plantations gained 12 sen to RM26.02 and AmBank climbed 10 sen to RM5.08.
