KUALA LUMPUR: The FBM KLCI saw a slight uptick this morning, with market sentiment cautiously optimistic as investors await potential moves from the Federal Reserve.
The FBM KLCI rose 0.56 of a point, or 0.03% to 1,609.31 at 9.07 am. The index opened up 0.13 of a point at 1,608.88 earlier.
Among the gainers, Malaysian Pacific Industries
gained 30 sen to RM26.24, ViTroc added 22 sen to RM4.03, United Plantations rose 16 sen to RM31.52 and Kuala Lumpur Kepong climbed 12 sen to RM21.52.
On the other hand, Dutch Lady fell 32 sen to RM30, PPB Group lost 14 sen to RM12.44, Aurelius Technologies declined eight sen to RM3.41 and Gamuda gave up eight sen to RM9.69.
ACE-Market debutant Topvision Eye Specialist rose four sen, or 12.12% to 37 sen. It is currently the most active counter on Bursa Malaysia with 31.53 million shares traded.
According to TA Research, FBM KLCI's improving short-term technical momentum indicators, following last Friday's rebound from recent profit-taking, indicate a potential short-term recovery for the index.
Furthermore, the research house said the local market will likely be buoyed by investor optimism as recent US economic data has solidified expectations of a 25-basis point interest rate cut by the Federal Reserve this week.
Nonetheless, it noted that stronger buying momentum and positive market breadth will be crucial to support the recovery and potentially sustain year-end window-dressing gains.
For the index, immediate chart resistance is at the 100-day moving average, currently at 1,627, followed by resistance at 1,648, the 76.4% Fibonacci retracement level, and the September peak at 1,675.
“Immediate support stays at 1,588, which is the 38.2% FR of the rally from 1,529 low (Aug 6) to 1,684 high (Aug 29), with next crucial support at 1,565, the 23.6% FR level, followed by the key 1,550 support,” TA said.
Meanwhile, Inter-Pacific Research noted that market players could now be eyeing the upcoming Fed meeting for a widely expected interest rate cut to preserve the key index’s mildly positive outlook into the start of 2025.
Therefore, the mild window dressing activities may continue as the key index looks to end the year on a firmer footing despite the continuing choppiness.
“On the upside, the key index could target the 1,612-1,615 levels before heading towards the 1,620 level. The supports, meanwhile, are at 1,605 and 1,600 levels respectively,” it added.
Inter-Pacific said the lower liners could experience further relief as their window dressing is expected to continue in the near term following an insipid 2H2024
However, the potential upsides may remain modest due to relatively low participation from retail investors, as many are already on their year-end break.
