Local market stays weak, external developments in view

KUALA LUMPUR: The domestic market is staying to a consolidation trading mode as the weak momentum from Wall Street overnight affirmed the downside bias on local stocks.

The benchmark FBM KLCI opened 2.04 points lower at 1,497.41 on Thursday, setting the stage for another negative session as investors take profit.

However, the downside is expected to be capped given positive developments in the region, which have lifted major Asian markets in previous sessions.

"We are banking on the recovery theme from China which will boost the FBM KLCI above the 1,500 level, while the lower liners may continue to capitalise on the improved trading environment and enjoy further rotational play," said Malacca Securities Research.

However, the research firm noted that the financial services sector could undergo a consolidation following Bank Negara's decision to maintain the overnight policy rate following the last monetary policy meeting.

It added that investors will be focused on the preliminary reading of US 4Q2022 GDP data tonight, would lend some insight to the state of the economy.

Investors took profit from consumer retail counters such as Heineken Malaysia down 42 sen to RM27.42, Carlsberg sliding 10 sen to RM23.34 and BAT falling eight sen to RM12.08.

PPB fell eight sen to RM17.44, Dialog slid seven sen to RM2.66 and Aurelius Tech shed six sen to RM2.40.

Of actives, Cypark was up 2.5 sen to 86.5 sen, Niche Capital Emas rose two sen to 16.5 sen and Dataprep was unchanged at 26.5 sen.

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