KUALA LUMPUR: The FBM KLCI opened higher on relief over the trade war reprieve but quickly reversed course, drifting lower on profit-taking after yesterday’s strong gains.
The market barometer fell 3.85 points, or 0.24%, to 1,578.54 at 9.09 am. The index opened 0.84 of a point higher at 1,582.39.
Overnight, the Dow Jones Industrial Average fell 0.64%, to 42,140.43, the S&P 500 gained 0.72%, to 5,886.55 and the Nasdaq Composite gained 1.61%, to 19,010.09.
On Bursa Malaysia, F&N rose 26 sen to RM26.86, DKSH added 26 sen to RM5.25, BLD Plantation
gained 20 sen to RM11.20 and Malaysian Pacific Industries climbed 16 sen to RM21.14.
Conversely, Heineken fell 24 sen to RM27.30, CIMB declined nine sen to RM7.22, Ayer lost 10 sen to RM7.70 and Panasonic Manufacturing eased 10 sen to RM13.90.
Inter-Pacific Research said the key index may continue its upward trajectory as strong buying interest, especially from foreign funds, returns.
It said the positive momentum is also supported by improved global equity market sentiment, following signs of easing in the trade dispute between the U.S. and China.
However, the research house noted that some hesitation may emerge in the upcoming session, as recent strong gains have pushed technical indicators towards overbought levels.
At the same time, market participants are likely to remain cautious ahead of the 1Q2025 GDP data due this Friday, as they look for signs of how tariffs have affected the country’s economic performance.
As such, it noted that any further upside may be more limited given the already toppish conditions, with potential bouts of profit-taking likely to slow the market’s momentum.
“On the upside, the hurdles are now at 1,586-1,590 levels, which also corresponds to the 200-day moving average line that may serve as a significant resistance level.
“The other hurdle is at the psychological 1,600 level, while the supports are at the 1,575 points and 1,565 points respectively,” Inter-acific said.
