KUALA LUMPUR: Bursa Malaysia extended yesterday's downtrend in early trade as investors’ risk appetite was weighed down by cautious market sentiment
The benchmark index fell 0.9 of a point, or 0.06% to 1,445.13 at 9.17am. The index opened 2.93 points lower at 1,442.89.
Nestle rose 40 sen to RM114.70, Heineken gained 28 sen to RM21.38, F&N added 18 sen to RM27.44 and Hong Leong Bank climbed eight sen to RM19.08.
In a note, Inter-Pacific Research said Bursa Malaysia’s near-term conditions remained unsettled by the low buying interest and lack of catalyst to provide the much-needed lift.
As a result, the downward pressure is likely to remain for the time being and the key index is unlikely to find sufficient traction to mount a meaningful rebound anytime soon.
Inter-Pacific said with interest rate concerns abated significantly, market players are scouring for fresh impetuses. However, with the year-end break and festivities approaching, there will be few leads available for market players to follow.
“At the same time, the window dressing activities are still about a fortnight away, leaving the key index on a drifting trend for now and the 1,445 level is also precarious.
“A breach below this level could see the key slip back to the 1,440 support. The hurdles, on the other hand, are at the psychological 1,450 level, followed by the 1,455 level,” Inter-Pacific said.
Similarly, it said the lower liners were devoid of traction to mount a meaningful up-move and they are likely to remain largely rangebound for now. There are also a few leads for retail players to follow and most of these stocks will also be on a drifting mode for now.
Meanwhile, Apex Securities anticipates continued volatility in the FBM KLCI over time, as investors exercise caution eagerly waiting for additional confirmation on US job data.
The research house said any recovery is expected to be tempered by quick profit-taking activities on signs of foreign fund outflows over the interim. The key economic focus will be directed toward US jobless claims numbers to be released today.
“We expect oil & gas stocks to remain under pressure because of the declining of crude oil prices, while the firmer gold prices may warrant a look onto gold-related stocks,” Apex said.