KUALA LUMPUR: The FBM KLCI is defending the newly claimed 1,600 level as profit-taking pressure mounted following the mixed performance on Wall Street overnight.
The key index was down 0.82 points at the opening bell to 1,605.84 as investors sought to take cash off the table after having retraced nearly all the losses made during the market rout a week earlier.
By 9.11am, the FBM KLCI looked in danger of losing its hold on 1,600 after falling nearly seven points to 1,599.69.
Looking at the technical charts, the FBM KLCI remained pressured by the 50-day simple moving average overheard, with a successful breach signalling more bullish price movement.
Apex Securities Research said the unabated volatility on Wall Street overnight may keep any further gains on the domestic market in check.
"The lower liners recovery may also come into a minor halt as investors may take this opportunity to book in recent short-term profits to monitor the geopolitical developments in the Middle East," said the research firm in a note.
"A surge in oil prices due to the escalated geopolitical tension in the Middle East whereby Brent oil prices rallied above US$80/bbl may present some trading opportunities within oil & gas sector.
"Gold-related stocks may also turn into the limelight with gold prices firmed above US$2,400/oz," it added.
Meanwhile, there was broad-based selling on the market with Kuala Lumpur Kepong dropping 18 sen to RM20.68, Tenaga Nasional falling four sen to RM13.90 and Telekom Malaysia shedding nine sen to RM6.87.
Leading the actives, Sik Cheong made its debut on the ACE Market with a 19.5 sen jump to 46.5 sen.
Cape EMS was down one sen to 49.5 sen and Barakah Offshore was flat at 7.5 sen.
