KUALA LUMPUR: The selling pressure seen in the previous week spilled over onto this week as investors awaited fresh leads in the the form of corporate results over the upcoming two weeks.
The FBM KLCI dropped 5.18 points to 1,566.57 at the start of the week's trading, reflecting the profit-taking activity on the domestic market following the sharp gains seen in the earlier half of the previous week.
According to TA Securities Research, the daily technical momentum indicators on the FBM KLCI are looking toppish and overbought, which suggests blue chips are due for a pullback, or at least a consolidation.
"Meanwhile, medium-term momentum and trend indicators on the local benchmark index remain bullish, implying further upside can be expected going forward.
"However, stronger buying momentum and liquidity boost are needed to promote a sustained rise to higher ground given the lack of positive catalysts on the local front," it said in its market commentary.
Rakuten Trade, meanwhile, said local institutions have turned net sellers to lock in some profits even as foreign funds return to the domestic market.
It noted also that recent initial public offerings on Bursa Malaysia have lost some of their lustre, and hopes retail participation will improve on the secondary market.
"For today, we expect the index to hover within the 1,570-1,580
range," it said in a note.
On the FBM KLCI, the blue chips were broadly lower, weighed down by financial services.
CIMB dropped six sen to RM7.12, Hong Leong Bank fell 14 sen to RM20.06 and RHB shed five sne to RM6.65.
Nestle dropped 62 sen to RM81.06 while Gamuda shaved four sen to RM4.55.
Actives on the broader market included NexG up 0.5 sen to 38 sen, Harvest Miracle flat at 18 sen and Innature rising one sen to 23.5 sen.
