KUALA LUMPUR: Despite opening marginally higher at the start of the opening bell, the FBM KLCI succumbed to mild profit-taking activities at midday.
Dealers said overall market sentiment remained cautious and investors remained on the sidelines in this holiday-shortened week.
At midday, the benchmark FBM KLCI fell 2.92 points to 1,550.59. The index opened 0.58 of a point higher at 1,554.09 this morning.
In the broader market, decliners outnumbered gainers 499 to 478 while 441 counters were unchanged. Turnover stood at 2.2 billion shares worth RM1.45bil.
TA Securities said the local market should slip back into profit-taking consolidation mode ahead of the weekend, with the lack of domestic positive catalysts and worries over the elevated and spreading Middle East geopolitical tensions clouding market tone.
“Overhead resistance for the index remains at 1,580, followed by 1,600, with stronger upside hurdles at the 1,618 level. Immediate support stays at 1,537 and 1,501, the respective rising 50-day and 100-day moving averages, with better support seen at 1,480,” it added.
Meanwhile, Malacca Securities believes buying interest may flow towards stocks on the local front, especially the technology sector, fueled by the positive sentiment on Wall Street.
“Wwe like the commodity-related sectors such as the plantation, O&G and gold sectors amid their firm underlying commodity prices. Besides, we favour the consumer sector for its defensive nature and firm earnings capability,” it said.
Among the decliners on Bursa Malaysia, Allianz tumbled 82 sen to RM21.38, Dutch Lady
slid 82 sen to RM33.30, Heineken fell 24 sen to RM23.44 and Hong Leong Financial Group lost 20 sen to RM16.62.
United Plantations jumped 56 sen to RM24.88, Malaysian Pacific Industries added 40 sen to RM31.60, Oriental Holdings gained 40 sen to RM7.16 and Nestle advanced 40 sen to RM122.90.
Meanwhile, Reuters reported that Asian equities were in a subdued mood on Friday as investors pondered the path for Federal Reserve interest rate cuts amid a murky U.S. inflation outlook.
Japan was the only real bright spot around the Asia Pacific on Friday, with the Nikkei 225 up 0.5%.
