FBM KLCI holds steady in anticipation of Cabinet reshuffle

KUALA LUMPUR: The FBM KLCI kept to a narrow trading band in early trade Tuesday as investors await for the announcement on Cabinet reshuffle.

Prime Minister Datuk Seri Anwar Ibrahim said the new line-up will see a larger Cabinet.

“This is because I’m transferring some of the tasks. But it will still be smaller than the previous one (administration),” he was quoted as saying by The Star.

The market bellwether added 0.55 of a point to 1,446.94 at 9.16 am. It opened 0.27 of a point at 1,446.12 earlier.

Apex Securities said politics-related stocks may experience volatility today following news of cabinet reshuffle taking place.

It expects the FBM KLCI to trade flat today as investors may stay on the sidelines ahead of US key economic data and the Fed interest rate decision.

“Profit-taking activities may emerge from the property sector after the surge yesterday. Also, energy-related stocks may continue to build onto their previous session gains following the rebound in in crude oil prices,” Apex said.

Meanwhile, Inter-Pacific Research said market conditions are still tepid for the most part with few noteworthy leads to entice market players and as a result, further gains may remain difficult to come by for the time being as market players await for further clarity on its direction.

“At the same time, market players will also be on the lookout of the purported cabinet reshuffle and the impact on the country’s economic outlook.

“For now, the key index may continue to trend within a tight range as it looks to find support around the 1,440-1,450 levels, but there could still be some mild upsides following the gains in key overseas indices overnight.

“The other support and resistance levels are at 1,435 and 1,455 points respectively,” the research house said.