KUALA LUMPUR: The FBM KLCI began the day on a positive note but experienced profit-taking by midday, dipping to an intra-morning low as investors turned cautious.
The market barometer fell 9.47 points, or 0.58% to 1,611.77, its intra-morning low at 12.30 pm.
There were 635 losers, 275 gainers and 440 counters traded unchanged on the Bursa Malaysia. Turnover stood at 1.7 billion shares valued at RM1.01bil.
Two companies, Mega Fortris Bhd and Azam Jaya Bhd, were listed on the Main Market of Bursa Malaysia today.
Azam Jaya opened at RM1 against its IPO price of 78 sen per share. The road infrastructure specialist surged 33.33%, or 26 sen to RM1.04 with 55.37 million shares done.
Security seals manufacturer, Mega Fortris opened unchanged from its IPO price of 67 sen per share. The counter slid 2.24%, or 1.5 sen to 65.5 sen with 52.04 million shares traded.
Among the decliners on Bursa Malaysia, F&N lost 62 sen to RM28.04, Dutch Lady
fell 48 sen to RM29.78, Malaysian Pacific Industries gave up 48 sen to RM26.02 and Tenaga Nasional eased 30 sen to RM14.10.
United Plantations, the top gainer on Bursa Malaysia, rose RM1.06 to RM29.16. Carlsberg gained 48 sen to RM20, Heineken added 40 sen to RM22.80 and Alliance Bank advanced 31 sen to RM4.81.
Malacca Securities said traders will closely monitor inflation and retail sales data, which could influence the outcome of upcoming Federal Open Market Committee (FOMC)meetings. The probability of a 25 basis point cut in the December FOMC has decreased to 84.9%, down from 64.9%.
“In the commodity markets, Brent oil prices fell below US$73 per barrel as fears of prolonged supply disruptions from a hurricane in the US Gulf of Mexico eased. Meanwhile, gold prices retreated to around US$2,684, and crude palm oil (CPO) CPO surged above the RM5,100 level,” it said.
Despite a slight rebound in the ringgit, Malacca Securities believes technology stocks could gain momentum, following the US market.
However, the upside may be limited due to PIE Industrial’s earnings.
“We also favour stocks within the shipping industry as AGX experienced a breakout last week. In view of the strong rally in CPO prices, we suggest that investors focus on the plantation sector heading into earnings season and 1Q25. Also, selected construction and building materials stocks are expected to post stronger earnings, supported by ongoing data centre investments,” it added.
Meanwhile, Hong Leong Investment Bank Research stated that the FBM KLCI index is likely to remain in consolidation mode ahead of the November results season and amid ongoing foreign net outflows.
It noted that the crucial support levels are at 1,589 (3-month low), 1,600, and 1,607 (50% Fibonacci retracement), while key resistance levels are at 1,632 (30-day moving average), 1,648 (76.4% Fibonacci retracement), and 1,655 (upper Bollinger Band).
“Ahead of the Nov results season, the KLCI is likely to consolidate further due to a lack of domestic catalysts and continued foreign net outflows for the third straight week.
“Moreover, the outlook may be tempered by external risks, including lingering Middle East turmoil, as well as bracing for more economic fluidity and market volatility under Trump 2.0 presidency,” it added.
