FBM KLCI edges lower despite Wall Street gains


KUALA LUMPUR: Bursa Malaysia opened slightly lower today despite gains on Wall Street overnight as mild profit-taking emerged in selected heavyweights.

The FBM KLCI eased 3.25 points, or 0.23% to 1,417.10 at 9.25am. The index opened 2.54 points lower at 1,417.81.

“While the overnight US rebound may spillover, profit-taking should stall the recent recovery, with market undertone remaining cautious over concern a credit crunch in the US and European markets may adversely impact global growth,” TA Securities said

“Immediate overhead resistance for the index remains at 1,450, followed by the easing 200-day moving average level at 1,460, with 1,500, then 1,512 as stronger resistance levels.

“Key supports at the recent low of 1,391, and last October’s low of 1,372 need to hold and prevent test of stronger chart supports at 1,350, 1,320 and 1,300,” it added.

Overnight, the US market rallied overnight following gains in technology stocks and improved sentiment in the banking sector.

The Dow Jones Industrial Average surged 323.35 points, or 1%, to close at 32,717.60. The S&P 500 gained 1.4% to end at 4,027.81, and the Nasdaq Composite added nearly 1.8% to close at 11,926.24.

Meanwhile, Malacca Securities believes the risk appetite on the local front will return, as upbeat earnings reports in the US, coupled with the expectations that the US Fed might be pausing the interest rate hikes may lift the market sentiment on the global markets.

“Meanwhile, we will also monitor the developments on the China visit by our Prime Minister and traders might speculate big investments to be expected.

“Commodities wise, the Brent crude oil remained firm above US$78, while the CPO traded above RM3,700. Gold price staged a mild pullback, hovering around US$1,965,” it said.

Among the gainers, Malaysian Pacific Industries added 40 sen to RM29.10, Bintulu Port rose 18 sen to RM5.18, Chin Hin gained 12 sen to RM4.36 and Ajinomoto climbed 10 sen to RM16.20.

Among the losers, Aeon Credit shed 14 sen to RM11.36, UMW eased 10 sen to RM3.85, Hengyuan lost six sen to RM3.44 and KLCC declined five sen to RM6.90.

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