"We expect the FBM KLCI to trend higher within the 1,435 to 1,440 range for the remaining week, with immediate resistance at 1,440 and support at 1,410," said Rakuten Trade's Thong.
KUALA LUMPUR: The FBM KLCI extended its decline for a second day, dragged down by selling mainly in banking stocks in tandem with the weak regional performance.
At 5pm yesterday, the market bellwether eased by 6.95 points or 0.48% to 1,425.68 from Tuesday’s close of 1,432.63.
The key index opened 0.48 of-a-point firmer at 1,433.11 and moved between 1,424.53 and 1,433.68 throughout the session.
The market breadth was negative with decliners surpassing gainers 438 to 364, while 435 counters were unchanged, 1,005 untraded and 23 others suspended.
Turnover decreased to 2.78 billion units valued at RM1.65bil from 3.45 billion units valued at RM2.12bil on Tuesday.
The financial services index dipped 0.74% or 117.62 points to 15,597.95.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said regionally, key indices ended mostly lower following a negative cue from Wall Street overnight as investors were cautiously awaiting the release of the US inflation data yesterday.
Meanwhile, news reports stated that White House officials and Republican leaders were engaged in contentious negotiations over the approval of a debt ceiling rise.
The White House is pushing for approval without compromising on spending initiatives, while the Republican House of Representatives speaker said he would not approve the debt ceiling increase unless the president’s spending initiatives are cut to safeguard against the escalating budget deficit.
Thong said the reasonable valuations of the FBM KLCI might attract bargain hunters although the sentiment on the local market is expected to remain cautious. Furthermore, the key index remained in an oversold position.
“Hence, we expect the FBM KLCI to trend higher within the 1,435 to 1,440 range for the remaining week, with immediate resistance at 1,440 and support at 1,410,” he told Bernama.
Among the heavyweights, Malayan Banking Bhd
slipped five sen to RM8.70, Public Bank Bhd lost three sen to RM3.99, CIMB Group Holdings Bhd was nine sen lower at RM5.02, and Tenaga Nasional Bhd fell 17 sen to RM9.03.
Petronas Chemicals Group Bhd added 11 sen to RM7.31.
As for the actives, Bahvest Resources Bhd was down two sen to 11.5 sen, Jade Marvel Group Bhd dipped half-a-sen to 27 sen, while KNM Group Bhd was flat at six sen.
Top Glove Corp Bhd gained one sen to RM1.10 and Velesto Energy Bhd rose half-a-sen to 23.5 sen.
