KUALA LUMPUR: The FBM KLCI traded lower in early trade Thursday, following two days of gains, as Wall Street declined overnight and investors remained on edge about the global economic outlook.
The benchmark FBM KLCI slid 10.17 points, or 0.64% at 9.13 am. The index opened 5.91 points lower at 1,585.96 earlier.
Selling was widespread with 592 counters closing lower as opposed to 127 gainers while 282 counters closed unchanged.
Overnight, the Dow Jones Industrial Average fell 0.6% to 38,763.45, the S&P 500 lost 0.77% to 5,199.5 and the Nasdaq Composite dropped 1.05% to 16,195.81.
Apex Securities anticipates that the local stock market will reflect Wall Street's recent decline due to profit-taking activities making a return.
“We advise investors to remain defensive and stay on the sidelines due to ongoing global headwinds such as potential US recessions and geopolitical tensions between Iran and Israel.
“Despite maintaining a positive longer-term outlook, we continue to favour the financial and REIT sectors to outperform others, serving as safe havens during this volatility,” it said.
Inter-Pacific Research noted that the market might aim to reclaim the 1,600 level due to improved sentiment. However, any further gains could be modest following the recent two-day rebound from the initial sharp decline.
The research house noted that there may still be uncertainty following the recent selloff, with market participants unsure of the market’s direction.
It said conditions might remain unsettled for an extended period, potentially slowing the pace of recovery, especially as the FBM KLCI nears the 1,600-resistance level.
“There is an interim hurdle at the 1,595 points, while the supports are pegged at the 1,595 level and 1,583 points respective,” Inter-Pacific said.
On Bursa Malaysia, Dutch Lady
slid 46 sen to RM30.04, Allianz fell 30 sen to RM20.10, Malaysian Pacific Industries lost 20 sen to RM35.30 and YTL Power declined 16 sen to RM4.21.
Heineken Malaysia jumped 50 sen to RM22.40, Edaran added 28 sen to RM2.50, F&N rose 16 sen to RM29.28 and LPI gained 16 sen to RM12.50.
Cape EMS, the most actively traded counter on Bursa Malaysia, climbed two sen to 45.5 sen with 96.8 million shares done.
