FBM KLCI flattish in early trade

KUALA LUMPUR: The FBM KLCI remained flattish on resuming trade on Tuesday after the Christmas break.

The market bellwether added 0.41 of a point to 1,454.79 at 9.14am. The index opened 0.3 of a point lower at 1,454.08.

The top gainer on Bursa Malaysia was Nestle, which rose 50 sen to RM120. PBA Holdings added 11 sen to RM1.26, Malaysian Pacific Industries gained 10 sen to RM27.98 and ARK Resources climbed 9.5 sen to 36.5 sen.

Meanwhile, the top decliner was Hextar Technologies, which lost 68 sen, to RM21.32. Batu Kawan fell 12 sen to RM20.38, Heineken declined 12 sen to RM24.12 and New Hoong Fatt gave up nine sen to RM3.26.

Inter-Pacific Research Sdn Bhd sees conditions remaining directionless in the day ahead with market participants still on their break and there are also fewer market leads to entice fresh buying.

“As a result, the key index is likely to maintain its directionless trading trend over the near term that could see the key index retaining its drifting mode.

“The lack of buying could also see the FBM KLCI losing further ground after the 1,455 level gave way last Friday and the 1,450-1,452 levels are coming into play,” the research house said.

“We think these levels should hold for the time being as the selling pressure is relatively benign and there could still be support for the key index to remain above these levels for now.

“The other support is at 1,445 points, while the immediate resistance is at 1,455 points, followed by the 1,460 points respectively,” Inter-Pacific said.

Meanwhile, Apex Securities expects window dressing activities to take place, particularly among blue chip stocks.

“The lower liners, however, may consolidate with trading activities likely to simmer with trading activities to remain thin on a holiday-shortened trading week.

“Healthcare sector may also see improved trading interest following the resurgence of Covid-19 cases. Also, we reckon the resurgence in gold prices may present some trading opportunities within gold-related stocks,” it said.