KUALA LUMPUR: Bursa Malaysia's benchmark index dropped slightly on Monday as investors took profit from Tenaga Nasional following last Friday's rally.
At the opening bell, the FBM KLCI was down two points to 1,626.14 after shares in the national power provider dropped 16 sen to RM14.58.
News reports last Friday said Tenaga Nasional could raise electricity tariffs in July next year, sending the utility's stock surging nearly 4%. However, subsequent comments by policymakers that the electricity tariff structure remains under review is tempering investor expectations.
There were other early laggards on early Monday trade, including Sunway down three sen to RM4.74, Telekom Malaysia falling two sen to RM6.73 and CIMB dropping five sen to RM8.10.
The FBM KLCI is facing some profit-taking pressure following Wall Street's sell-off last Friday, despite expectations that a year-end "Santa Claus" rally would take equities prices higher.
However, the benchmark has remained firm above the 1,600 psychological support.
"The FBM KLCI advanced to strengthened its position above 1,600 as the key index marched above the 50-day simple moving average for the first time since October 2024. Year-end window dressing activities may extend over time," said Apex Securities in a note.
It added that the index's immediate resistance is at 1,645 while support is expects around 1,600.
On a sectoral basis, Apex said the plantation sector may see some bargain hunting activity, following the rally in CPO prices last Friday. Conversely, the technology sector could beset some selling pressure, reflecting the selloff in Nasdaq on Friday.
Meanwhile, Rakuten Trade is also expecting more upside for the market in the final two days of the year.
"We believe the index may end 2024 on a higher note with the 1,650 level as the immediate resistance. As such, we anticipate the benchmark index to hover within the 1,630-
1,640 range today," said the research firm in its market outlook.
Among the actively traded stocks, TWL rose 0.5 sen to three sen, ECA dropped two sen to 27 sen and Mui Properties gained 1.5 sen to 45 sen.
