KUALA LUMPUR: Stock market investors on Bursa Malaysia are expected to take profit ahead of the extended Hari Raya weekend, especially after the surge in the previous session returned blue-chip prices to a two-week high.
At the start of Friday trading, the FBM KLCI was down 4.16 points to 1,531.57, taking a bite out of the 18-point rally in the previous day.
Sentiment in equities has improved following US President Donald Trump's announcement that he would be taking a "more lenient than reciprocal" approach to the trade tariffs on April 2.
However, given the likelihood that Bursa Malaysia will be closed for the holidays in the lead-up to April 2, investors could be opting to cash out their profits for now.
Rakuten Trade in its review said the recent breakout leads to a more bullish medium-term projection for the FBM KLCI.
"Domestically, the FBM KLCI has broken above the 1,520 resistance level. Should the index hold above this level for an extended period, we see potential for an advance toward the 1,549–1,570 range in the medium term," it said.
"For now, we anticipate the FBM KLCI to trend within the 1,530–1,540 range today.
Malacca Securities Research said window-dressing activities at the end of the first quarter could support the local market, despite Wall Street's negative performance overnight.
"The key index charged towards MA-20 while technical indicators showing a positive mood at the current juncture; MACD histogram expanded positively, while the RSI is approaching 50.
"Resistance is anticipated around 1,550-1,555 while support is set at 1,515-1,520," it said in its technical review.
Among stocks seeing profit-taking, Nestle was down 24 sen to RM74.80, PETRONAS Gas lost 26 sen to RM16.96 and Kuala Lumpur Kepong dipped eight sen to RM20.80.
Of actives, Main Market debutant HI Mobility was up two sen to RM1.24, after opening at RM1.27. It was the second most actively traded share with 24.7 million units changing hands.
