KUALA LUMPUR: The FBM KLCI edged up in early trade Monday, driven by ongoing buying support in select blue chips.
The market bellwether rose 2.33 points, or 0.15% to 1,542.28 at 9.12 am. The index opened 2.15 points firmer at 1,542.01 this morning.
HeiTech Padu added 30 sen to RM2.75, Heineken rose 26 sen to RM23.10, KLCC gained 16 sen to RM7.44 and Kotra advanced 14 sen to RM4.90.
Among the decliners, PETRONAS Dagangan slid 14 sen to RM21.66, LPI fell 10 sen to RM12.18, Tenaga declined eight sen to RM11.20 and British American Tobacco
lost seven sen to RM8.06.
Inter-Pacific Research despite the continuing recovery, market conditions are still largely on an indifferent note, hampered by the lack of leads even as the Fed has reiterated its plan to trim interest rates later in the year.
As it is, market players are angling for more positive corporate and economic developments, both domestic and overseas, before making further moves.
In addition, Inter-Pacific said the FBM KLCI has also made decent headway since the start of the year and new impetuses are required to haul it higher, particularly to climb past the psychological 1,550 level that has proven to be a significant hurdle for the time being.
“As such, we think the key index may now be attempting to build up a base around the psychological level and trend within the 1,530 and 1,550 levels which could be a springboard for further gains when there is further clarity on the market’s direction.
“In the interim, the other support and resistance levels are at 1,538 and 1,545 points respectively,” the research house said.
Apex Securities said the FBM KLCI is expected to remain choppy, given the softer global market performance.
It said the lower liners may also see weakness on the back tepid trading sentiment. Economic-wise, all eyes will be focusing on US inflation data to be released this week.
“We reckon the technology sector may face a potential pullback hence, we advise investors to exercise caution when trading in this sector,” it added.
Meanwhile, crude oil prices have also fallen dragged by the lackluster demand from China.
Nonetheless, Apex Securities believes this presents an opportune moment for investors to engage in bottom fishing, considering the ongoing supply constraints that are expected to persist in the foreseeable future, particularly as tensions in the Middle East continue.
