KUALA LUMPUR: The FBM KLCI pared its gains at lunch break on Thursday due to profit-taking in a weak broader market.
At the lunch break, the market bellwether rose 1.35 points, or 0.08%, to 1,634.90. The index rose as much as 9.01 points to its intra-morning high of 1,642.56.
Gainers lagged behind losers with 597 to 278, while 437 counters remained unchanged. Volume was 1.35 billion shares valued at RM964.04mil.
TA Securities stated that the current negative technical momentum and trend indicators on the FBM KLCI, following last week's slight recovery from recent profit-taking, suggest that market sentiment remains weak. The lack of fresh local upside catalysts contributes to this cautious outlook.
“However, given investor interest on measures likely to be proposed for the keenly anticipated Budget 2025 this Friday, selected sectors seen to benefit should see revived buying interest,” it said.
Meanwhile, the strong performance on Wall Street last Friday, driven by optimism over robust earnings from major banks and lower producer price inflation, is expected to enhance local sentiment and support a potential soft landing for the US economy.
“Immediate index support will be the recent correction low of 1,625, with 1,620 and then 1,600 acting as stronger supports. Immediate resistance is set at 1,660, followed by the recent highs of 1,675 and 1,684, and then 1,695, the Dec 2020 high, as tougher resistance levels,” it said.
TA said its stock picks for this week include key construction, telecom, and utility heavyweights, along with selected technology stocks.
These are expected to attract buyers looking for recovery potential, given their strong upside following recent corrections.
Meanwhile, Rakuten Trade anticipates that the FBM KLCI will continue in a consolidation phase this week, unless new catalysts emerge.
“Investors are urged to remain cautious until the market's direction becomes more evident.
“As such, we anticipate the benchmark index to trend within the range of 1,630- 1,640 for today,” it added.
Nestle, the top loser on Bursa Malaysia, tumbled RM2.30 to RM102.30. Hong Leong Industries declined 30 sen to RM13.68 and Malaysian Pacific Industries
lost 18 sen to RM26.08.
Among the gainers, Dutch Lady jumped 38 sen to RM31.80, Allianz added 24 sen to RM20.38, Apollo Food rose 12 sen to RM6.73 and LPI Capital gained 10 sen to RM12.70.
