KUALA LUMPUR: The FBM KLCI is clinging to the 1,600 level after having slipped below the psychological support last Friday.
Opening 1.55 points higher at 1,599.78, the benchmark index is searching for fresh leads to move into a higher leg of trading.
Investor sentiment, however, remains supported by Wall Street's record-high closing last week on the back of hopes that trade relations between US President Donald Trump and his China counterpart were thawing, as well as the Federal Reserve's interest rate cut.
Malacca Securities said the FBM KLCI could take its cure from Wall Street's positive lead with the key index to trade on a firmer footing due to the narrower US-Malaysia interest rate differential.
"Moreover, the overall positive sentiment on the Nasdaq may spill over into the local technology stocks in the near term," it said in a note.
TA Securities took on a more cautious near-term outlook as it siad there were weaker short-term trend and momentum signals on the FBM KLCI following last week's failure to stay above the 1,600 level.
"More sideways trade is anticipated this week as the month draws to a close, with the absence of any positive catalysts to see the local market extend consolidation or prolong base building," it said in its market commentary.
The research firm is more positive over the medium-term, with signals ponting to potential buying opportunities if the market continues to correct.
It said immediate support is set at the 61.8%FR (1,564) with stronger supports seen at the 50%FR (1,527) followed by the 38.2%FR (1,490). Immediate resistance remains the December 2024 high of 1,644, with the highs of 1,684, and 1,695 as next upside hurdles.
Among Bursa Malaysia's top active counters, VS Industry rose one sne to 60.5 sen, NexG gained 1.5 sen to 50.5 sen and Pharmaniaga
was flat at 26.5 sen.
Gainers on the FBM KLCI included CIMB up three sne to RM7.26, IHH rising six sen to RM7.39 and Maybank adding four sen ot RM9.84.
