KUALA LUMPUR: Weak technical signals and trend indicators after last week's choppy trading sessions suggest the FBM KLCI will continue to consolidate with a downside bias this week, pending fresh catalysts, says TA Securities.
The research firm said in its market commentary lingering concerns over trade uncertainty between the US and global trade partners are also expected to dampen sentiment over the near term, although Bank Negara's recent overnight policy rate cut could provide support to interest-sensitive sectors such as property and construction.
At Monday's open, the FBM KLCI dropped 0.51 points to 1,511.83, as investors stayed by the sidelines.
Declining shares included RHB down six sen to RM6.35, Axiata falling three sen to RM2.53 and PETRONAS Chemicals sliding three sen to RM3.27.
The benchmark, meanwhile, was supported by PETRONAS Gas up 16 sen to RM17.86, Scientex gaining five sen to RM3.32 and QL Resources adding five sen to RM4.57.
Most active stocks were Zetrix AI up one sen to RM1.01, Top Glove gaining two sen to 70.5 sen and XL unchanged at 55.5 sen.
On sectoral outlook, Malacca Securities said the prospects of further monetary easing by Bank Negara should cushion the downside risk on the local front, especially in property stocks, given the lower mortgage rates.
"We also view this as an opportune time to build positions in REITs, which still offer premium dividend yields to Malaysian bonds.
"Meanwhile, we favour utility companies like MNHLDG and UUE as both companies may be a decent proxy for Tenaga’s CapEx rollout on power grid upgrades, RE as well as NETR policies," it said in a note.
