KUALA LUMPUR: The FBM KLCI slipped on profit-taking following last Friday's buying surge as US tariffs imposed on Malaysian exports were lowered.
However, the optimism on Bursa Malaysia was short-lived as the US posted a dismal jobs report - which suggested the world's largest economy was looking shaky - giving domestic investors an opportunity to cash out.
At 9am, the FBM KLCI dropped 3.07 points to 1,530.28, suggesting the market was not ready to break out of the consolidation phase.
According to TA Securities, short- and medium-term technical momentum and trend indicators on the FBM KLCI are mostly recovering, suggesting a potential rebound in the coming weeks.
"This recovery is supported by improved market sentiment following the reduction of U.S. tariffs on Malaysian exports from 25% to 19%.
"Meanwhile, the finalization of the baseline tariff rate is also expected to further bolster investor confidence in the near
term," it said in its market commentary.
Nonethless, a sustained move to higher levels will require stronger
buying momentum and more favourable liquidity conditions, it added.
Price falls were seen in Nestle down 50 sen to RM87.30, F&N shaving 44 sen to RM19.90 and Hong Leong Bank dropping 12 sen to RM19.02.
Following the previous week's rally in the semiconductor sector, Inari slid eight sen to RM2.05, Unisem fell eight sen to RM2.29 while Pentamaster shed seven sen to RM3.51.
Of actives, Magma dropped five sen to 26.5 sen, Hubline was flat at four sen and Top Glove was down two sen to 65.5 sen.
