KUALA LUMPUR: The FBM KLCI sinks deeper into negative territory at midday break, mirroring the bearish trend seen across the region.
At lunch break, the market barometer closed down 6.93 points, or 0.42%, at 1,634.60, dragged down by losses in banking stocks, YTL Power, and Petronas Chemicals.
Market breadth also turned negative, with losers outnumbering gainers by 639 to 228, while 467 stocks remained unchanged. Turnover was 1.43 billion shares valued at RM916.6mil.
Among the decliners, Nestle tumbled RM1.80 to RM102.60, Heineken lost 28 sen to RM23.10, Hong Leong Financial Group fell 26 sen to RM19.12 and LPI closed down 26 sen to RM13.36.
Conversely, MNRB jumped 17 sen to RM2.28, IHH Healthcare added 12 sen to RM7.33, United Plantations gained 10 sen to RM26.42 and Well Chip Group climbed seven sen to RM1.45.
BSL Corp jumped 16.67%, or 0.5 sen to 3.5 sen. It is the most active counter with 111.56 million shares done.
TA Securities said the local market undertone should remain cautious, with prevailing uncertainties over the potential impact from the upcoming key general elections in Japan and the US dampening investor sentiment.
“Immediate index resistance remains at 1,660, followed by the recent highs of 1,675 and 1,684, and then 1,695, Dec 2020 high, as tougher resistance levels.
“Immediate support will be the recent correction low of 1,625, with 1,620 and then 1,600 acting as stronger supports,” it said.
Meanwhile, Malacca Securities believes investors will continue to focus on the construction, property, and renewable energy sectors after the Budget 2025.
“We are optimistic about the commodity sectors, as CPO has been trending positively in recent trading sessions, which may drive higher trading activity in the plantation sector.
“Besides, as the ringgit weakened further to RM4.347 against the US dollar, we expect traders to seize the opportunity to accumulate stocks in the glove and technology sectors,” it added.
