KUALA LUMPUR: The FBM KLCI reversed its strong start and slipped into negative territory by midday as selling pressure rose.
At 12.30 pm, the market barometer fell by 0.15 of a point to 1,618.15 after reaching an intra-morning high of 1,630.39, weighed by losses in Tenaga Nasional and Maybank.
Losers trailed gainers by 634 to 241, while 493 counters traded unchanged. Volume was 1.36 billion shares valued at RM981.4mil.
Tenaga Nasional dropped 26 sen to RM14.12, lowering the index by 2.2051 points, while Maybank decreased by six sen to RM10.48, contributing 1.0564 points to the index's decline.
Hong Leong Bank lost 24 sen to RM20.98, Bursa Malaysia declined 19 sen to RM8.80 and Panasonic Manufacturing
gave up 16 sen to RM18.20.
Among the gainers, Kuala Lumpur Kepong jumped 42 sen to RM21.52, Nestle rose 40 sen to RM100.60, PETRONAS Dagangan added 28 sen to RM18 and United Plantations climbed 20 sen to RM26.70.
TA Securities has revised its outlook for the index following last week's correction, lowering the immediate support level to the 1,600 psychological mark.
It said the next crucial support is now at the 200-day moving average of 1,588, followed by 1,575, which is the 76.4% Fibonacci retracement level.
“On the upside, immediate resistance is adjusted down to last week's high of 1,648, with next upside hurdles at 1,660, and recent highs of 1,675 and 1,684,” it said.
“On stock picks for this week, mostly construction, oil & gas and technology lower liners should attract buyers looking for recovery upside after the recent sharp profit-taking corrections,” TA said.
Meanwhile, Malacca Securities anticipated that with the ringgit weakening to the RM4.337/USD range, export-oriented sectors such as gloves and technology would benefit, while traders might move away from domestic-focused stocks.
Additionally, commodity-related sectors such as plantation, O&G, and gold-related stocks were expected to benefit from recent movements in underlying commodity prices.
Malacca Securities believed that Bahvest Resources might continue its rally in the near term, given the surge in gold prices. This week, selected construction and shipping stocks were also expected to trend positively as momentum built.
