KUALA LUMPUR: The FBM KLCI fell in early trade Friday amid a hawkish tone by the US Federal Reserve.
U.S. Federal Reserve Chief Jerome Powell warned that U.S. interest rates may need to rise further to win the war on inflation.
Wall Street faltered following the hawkish tone. The Dow Jones Industrial Average fell 0.65% to 33,891.94, the S&P 500 lost 0.81% to 4,347.35 and the Nasdaq Composite lost 0.94% to 13,521.45.
The FBM KLCI fell 1.28 points, or 0.09% to 1,450.44 at 9.13am. The index opened 1.71 points lower at 1,450.56.
KESM jumped 14 sen to RM7.14, United Plantations added 12 sen to RM16.70, Westports rose nine sen to RM3.47 and Edaran gained 8.5 sen to RM1.01.
Malaysian Pacific Industries
slid 34 sen to RM26.60, Kuala Lumpur Kepong lost 10 sen to RM21.78, Malayan Cement fell 10 sen to RM3.92 and Carlsberg declined eight sen to RM19.86.
TA Securities said the local market should extend consolidation with investors likely to be sidelined ahead of the long Deepavali weekend break, as hopes global interest rates may have peaked help cushion downside.
“Immediate index support will be 1,450, with 1,430, and then 1,400/1,390 as stronger support platform. Resistance is set at the 1,490/1,500 area, followed by 1,520 as next upside hurdle,” it added.
Inter-Pacific Research said with the FBM KLCI’s inability to hold on to its recent gains, market conditions are turning indifferent again, particularly with the 1,465 level – the next “make or break” line, proving to be a formidable level to clear.
“As a result, it appears that the key index will drift again as the follow through buying interest remains thin and is unable to generate sufficient support for the key index to make the pass.
“At the same time, the pullback on Wall Street overnight and the upcoming long weekend break could see most market players continuing to retreat to the sidelines for now.
“This also means the 1,450 level is under threat again, albeit we think the key index could stay close to the level for now as it looks to garner some support after the recent falls,” The research house said.
Inter-Pacific said the supports are at the 1,446-1,448 levels, followed by the 1,442 level. The resistances are at 1,455-1,460 levels, with the 1,462-1,465 levels serving as the major hurdles.
