Bursa struggles to stay above key support

  • Markets
  • Friday, 09 Jun 2023

KUALA LUMPUR: The domestic market is expected to stay in bearish mode amid growing concerns the US Federal Reserve may raise interest rates at its monetary policy meeting next meeting.

At the previous session's close the benchmark, the FBM KLCI was hovering just above the 1,373 low set on Oct 13, 2022, a negative crossing of which would see the index return to a 2020 low.

According to TA Securities Research, the key index should drift lower on sustained bearish technical momentum to fresh three-year lows amid growth concerns as the rising global inflation and interest rate trend remain sticky.

"A breakdown below 1,370 could accelerate test of stronger chart supports at 1,350, 1,320 and 1,300, while overhead resistance is revised lower to 1,400, with 1,420, followed by the 200-day moving average at 1,451 as stronger resistance levels," said the research firm.

At the opening bell on Friday, the FBM KLCI was up 0.94 points to 1,375.58 as investors struggled to recoup some of the losses seen over the course of the week.

Banks were seen rising with Maybank gaining two sen to RM8.62, Public Bank adding one sen to RM3.82 and CIMB putting on one sen to RM4.91.

PETRONAS Chemicals was also improved, up five sen to RM6.47 and Tenaga Nasional climbed seven sen to RM9.19.

On the broader market, SFP Tech gained five sen to RM2.59, EP Manufacturing jumped 4.5 sen to 79 sen and MAHB rose four sen to RM6.94. AirAsia X also climbed four sen to RM1.82.

Technology counters found their footing following the Nasdaq's 1% gain overnight. Bursa Malaysia's technology index rose 0.2% to 59.89.

Leading gainers included Pentamaster up seven sen to RM4.78, UWC rising five sen to RM3.07 and MI Technovation adding three sen to RM1.36.

Among top actives, Sapura Energy was up one sen to 4.5 sen, SCIB added 0.5 sen to 28.5 sen and Meta Bright was unchanged at 17 sen.

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