KUALA LUMPUR: Bursa Malaysia was subdued on Monday as investors wound down for the Lunar New Year festivities.
At the start of trading, the FBM KLCI inched just 0.42 points lower to 1,563.31, with the range-bound trading indicative of an expected slowdown in trading interest in the coming week.
Malacca Securities Research said there is the prospect of bargain-hunting opportunities in the YTL counters, which dragged on the local bourse last Friday following the announcement of its 1-for-5 non-tradeable warrants, which were seen as an inflexible corporate exercise.
"With the proposition of issuing bonus warrants for YTL-related counters, where the exercise price is set at RM2.45 for YTLPOWR, we believe bargain-hunting opportunities will emerge if there is further retracement," said the research firm in a note.
It added that the recent announcement from the Ministry of Communication that 67 identified industrial areas were set to be equipped with 5G facilities will benefit companies involved in underground utilities work, at least in the mid-term.
"Also, we are positive on the ongoing NETR and LSS projects, coupled with the data center boom, which are expected to drive higher electricity demand in the RE segment," it added.
The research firm said there are signs of a recovery on the tehcnical indicators with the RSI rebounded off the oversold zone while the MACD histogram expanded in positive territory.
"Resistance is anticipated around 1,588-1,593, while support is set at 1,553-1,558."
Meanwhile, YTL Power fell a further eight sen to RM3.53 while YTL Corp was down one sen to RM2.11 in early morning trade.
Gamuda slipped seven sen to RM4.12, Press Metal
dipped six sen to RM4.96 while Maybank was down four sen to MR10.36.
Of actives, Harvest Miracle was flat at 18 sen, Talam Transform dipped 0.5 sen to two sen and Oriental Kopi shed one sen ot 84 sen.
