KUALA LUMPUR: Bursa Malaysia trends higher in early trade, showing a positive rebound after five consecutive sessions of decline as investors step back in cautiously.
The FBM KLCI rose 10.05 points, or 0.62% to 1,628.35 at 9.10 am. It opened 4.04 points higher at 1,622.34 earlier.
Among the gainers, Nestle rose 30 sen to RM100.50, United Plantations added 24 sen to RM26.74, Gamuda gained 13 sen to RM8.63 and MISC climbed 12 sen to RM7.58.
On the other hand, Allianz slid 14 sen to RM20.52, Tenaga Nasional fell 10 sen to RM14.28, Dutch Lady
eased eight sen to RM30.50 and LPI Capital gave up eight sen to RM13.30.
ACE-Market debutant, Sorento Capital added 0.5 sen, or 1.35% to 37.5 sen with 63 million shares traded.
Inter-Pacific Research said the persistent selling of key index constituents is creating a bearish tone in market sentiment, with participants growing increasingly cautious about near-term performance following the breach of successive support levels.
As a result, the uncertain market outlook is likely to persist for now, potentially leading the market to continue its drifting trend."
The research house noted that fresh buying interest remains limited due to a lack of domestic catalysts, lingering uncertainties around the upcoming U.S. interest rate decision, and China’s persistently weak economic outlook, which could weigh on sentiment for an extended period.
“Consequently, the key index has yet to find support following the termination of its base-building efforts and the next support is now set at the 1,610 level, followed by the 1,605 level. The resistances, on the other hand, are at 1,620 points and 1,625 points respectively,” Inter-Pacifoc said.
Meanwhile, Rakuten Trade believed a swift rebound above the 1,630 mark was needed to avoid prolonged consolidation for the local bourse.
“We expect the index to stay side-ways possibly oscillating between the 1,620-1,630 range today,” it added.
