KUALA LUMPUR: The FBM KLCI opened higher but drifted slightly lower thereafter, due to selling activities led by selected heavyweights.
At 9.13am, the benchmark index fell 1.58 points, or 0.1% to 1,435.17. It opened 2.12 points higher at 1,438.82.
Hong Leong Investment Bank said judging from a steeply oversold KLCI after plunging 113 points in five weeks, the index could stage a further relief rebound this week in anticipation of 1H22 window dressing activities.
“However, further upside could be capped near stiff resistance at the neckline 1,476 levels.
“Only a successful breakout above 1,476 would lift KLCI to revisit 1,500-1,515 zones. On the flip side, any sharp drawdown may be cushioned at 1,395-1,415 territory,” it said.
Malacca Securities said given the sharp gains on Wall Street overnight, investors’ narrative may have changed for now and may look out for opportunities within the stock market as most of the stocks were bashed down and oversold over the past weeks.
“On a side note, we believe the optimism in the poultry sector may fade following the Prime Minister’s decision to retain the ceiling price of chicken,” it said.
Among the KLCI component stocks, Petronas Chemicals fell 12 sen to RM9.13, Tenaga lost 10 sen to RM8.09, Sime Plantation eased five sen to RM4.17 and Telekom Malaysia declined three sen to RM5.12.
Kuala Lumpur Kepong rose 10 sen to RM22.48, MISC added eight sen to RM7.02, Press Metal
gained six sen to RM4.83 and Genting climbed three sen to RM4.61.
On the broader market, Malaysian Pacific Industries jumped 50 sen to RM28.50, Pentamaster gained 11 sen to RM3.74 and Petron Malaysia rose 10 sen to RM5.50.
