Bursa Malaysia gains on bargain hunting amid cautious sentiment


KUALA LUMPUR: Bursa Malaysia opened higher in early trade on Monday, supported by bargain-hunting activities following the recent sell-off.

At 9:13 am, the FBM KLCI rose 3.71 points, or 0.23%, to 1,595.12, after opening 2.69 points higher at 1,594.10.

Inter-Pacific Research noted that the ongoing selldown by foreign funds, coupled with growing economic challenges, is likely to keep market sentiment cautious in the near term.

The research house also highlighted that the lack of significant positive factors to instil confidence among market participants could lead to a drifting market trend.

However, the FBM KLCI may still aim for a positive start to the week, as mild bargain hunting could emerge on some of the stocks that were battered last week, with domestic institutions likely to offer support ahead of the midweek Christmas break.

“This could also be seen as mild window dressing activities, as the key index looks to end the year around the psychological 1,600 level,” Inter-Pacific said.

The immediate support levels are around 1,585-1,590, with further support at 1,580. The interim resistance is at 1,595, while above 1,600, the next hurdle is at 1,605.

Inter-Pacific also noted that the lower liners remain unsettled, with their drifting trend expected to continue for now. The participation rate is likely to decrease as the year-end holidays approach, reinforcing the mixed market trend.

Meanwhile, Rakuten Trade expects a swift recovery today, drawing support from the brighter prospects on Wall Street last Friday. It anticipates the index to hover within the 1,595-1,605 range.

"All said, the crude palm oil price continues to slide over the past few sessions from around RM5,200 per tonne to currently RM4,500 a tonne on concerns of demand from China and lower exports," it added.

Among the gainers, Nestle rose 20 sen to RM97.20, Malaysian Pacific Industries gained 12 sen to RM25.32, Malayan Cement added 11 sen to RM5.12, and Genting climbed six sen to RM4.71.

On the downside, United Plantations fell 48 sen to RM31.34, Aeon Credit lost 16 sen to RM6.06, MBM Resources dropped 16 sen to RM6.04, and Westports declined three sen to RM4.48.

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FBM KLCI , KLCI , Bursa Malaysia

   

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