Bursa's blue chips start on a slide

KUALA LUMPUR: The benchmark FBM KLCI continues to lose momentum following the February earnings season, although there has been some buying interest in technology stocks in line with the global sentiment.

According to Malacca Securities Research, investors remain chasing tech stock amid the AI-craze and addition of SMCI to the S&P500.

"The latest segment that got a boost is the memory chipmakers where high bandwidth memory solutions will be used in the latest Nvidia’s AI chips.

"Given this scenario, the upward tone will persist within the AI-related stocks for the near term," said the research firm.

Malacca Securities expects the broader market to stay muted over the near term in the absence of fresh leads.

However, commodities sector such as as the oil and gas, gold and plantation sectors may stay stronger in the near term as their underlying commodities prices were traded firmer.

"Meanwhile, we like stocks with high net cash and decent dividend yield, within the furniture, metal and technology sector," said the research firm.

At the opening bell, the FBM KLCI was down 1.35 points to 1,537.92, slipping below the 21-day simple moving average for the first time since the start of the year's trading on Jan 2.

The selling pressure persisted until, at the time of writing, the FBM KLCI has shed 10.01 points to a low of 1,529.26.

The blue chips were broadly lower with Hong Leong Bank dropping 26 sen to RM19.32, PPB slipping 12 sen to RM15.16, Kuala Lumpur Kepong falling 20 sen to RM22.12 and Tenaga shedding 14 sen to RM11.06.

Top actives were Harvest Miracle up 0.5 sen to 14.5 sen, Ekovest up 1.5 sen to 46.5 sen and Velesto dropping 0.5 sne ot 28.5 sen.

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