KUALA LUMPUR: The FBM KLCI kicked off the new quarter on Tuesday with follow-through selling in early trade, extending the previous session's downward momentum, despite gains on Wall Street overnight.
Overnight, the Dow Jones Industrial Average rose 0.04% to 42,330.15. The S&P 500 gained 0.42% to 5,762.48 and the Nasdaq Composite advanced 0.38% to 18,189.17.
The market bellwether declined 2.85 points, or 0.17% to 1,646.06 at 9.13 am. The index opened 1.49 points weaker at 1,647.42 earlier.
Inter-Pacific Research said the near-term outlook is expected to remain subdued as fresh buying interest fades, with the sluggish trend likely to persist for longer.
The research house said overall conditions are also tentative with the lack of fresh leads seeing more profit-taking as market players opt to lock in some of their year-to-date gains instead.
“In the absence of many market pointers, the profit-taking spell looks to continue into the start of the quarter, albeit we do not rule out the emergence of buying support later in the day that could help to shore up the FBM KLCI back close to the 1,650 level.
“In the meantime, the key index’s immediate support is now at 1,647 points, followed by the 1,640-1,642 levels. Above the 1,650 level, the resistances are at 1,655 points and 1,660 points respectively,” Inter-Pacific said.
It added that the lower liners have been struggling recently, and with low participation, the lacklustre trend is likely to persist. With little buying interest, these stocks may continue to drift for now.
Among the losers on Bursa Malaysia, United Plantations slid 18 sen to RM26, SD Guthrie fell nine sen to RM4.70, Alliance Bank Malaysia declined eight sen to RM4.37 and Malayan Cement lost eight sen to RM5.12.
On the other hand, Malaysian Pacific Industries
rose 20 sen to RM26.80, F&N added 18 sen to RM31.4, Dutch Lady gained 14 sen to RM32.10 and PETRONAS Dagangan climbed 14 sen to RM18.
DNeX, the most active counter on Bursa Malaysia, jumped 14.93%, or five sen to 38.5 sen with 44.7 million shares traded.
Meanwhile, Apex Securities said bargain hunting may emerge on the local bourse today, likely reflecting the positive momentum from Wall Street after the Fed Chairman's speech alleviated concerns over the US economy.
It said this could be further supported by reduced fund rotation from foreign investors as China’s financial markets close for a week-long national holiday.
Apex said investors will focus on key US economic indicators this week, including the manufacturing PMI, job openings, and nonfarm payrolls data, for further insights into the US economic outlook.
“Sector-wise, we favour sectors benefiting from the strengthening of the local currency, such as consumer and financial sectors. Tourism-related counters may also see buying interest, spurred by an expected increase in tourist arrivals from China during their holidays. However, caution is advised for export-oriented sectors like technology, which may face pressure with stronger ringgit,” it said.
