KUALA LUMPUR: The benchmark FBM KLCI opened flat on the 1,500 level as investors nibbled on the previous day's gains even as optimism grew that the tariff war was due for a de-escalation.
At 9am, the main index slipped 1.16 points to 1,500.55, but held at the crucial resistance-turned-support amid the uptick in investor sentiment.
Overnight, Wall Street equities were spurred higher by comments from US policymakers that tariffs on China will come down, but closed a long way off intraday highs as gains were capped by the ongoing uncertainty.
Rakuten Trade noted that "no news is good news" and the absence of flip-flopping from US President Donald Trump has been positive for markets with the US 10-year yield easing slightly to 4.385%.
The research firm was also surprised by the FBM KLCI's surge to 1,500 points in the previous session given the dismal showing in the day before.
"Whether this is sustainable remains to be seen but we are hopeful that the index is able to re-test the 1,530 mark soonest
possible.
"Notwithstanding this, daily volume traded
remained low at below three billion shares hence we suspect market sentiment to stay cautious and expect the index to trend within the 1,500-1,515 range today," it said in its daily market outlook.
In its technical projection, TA Securities said immediate resistance is maintained at 1,527, which represents the 50%FR of the rally from the 1,369 low (June 2023) to the 1,684 peak (August 2024).
"Next upside hurdles are seen at the 61.8%FR (1,564) and the 76.4%FR (1,610).
"Immediate support remains at the 23.6%FR (1,444) with stronger supports seen at the 1,400 psychological level, followed by the June 2023 low of 1,369," it added.
Leading the rally in early trade, Hong Leong Financial Group climbed 18 sen to RM17.10, PETRONAS Dagangan gained 14 sen to RM19.44 and CIMB addd eight sen to RM6.93.
The most heavily traded stocks included Digistar rising 1.5 sen to six sen, Velesto
unchanged at 14.5 sen and SFP Tech adding one sen to 21.5 sen.
