KUALA LUMPUR: The FBM KLCI continued on its upward trajectory on Thursday, despite warnings from analysts there could be a near-term pullback as the ongoing US government shutdown weighs on investor sentiment.
Wall Street shrugged off concern over the government shutdown overnight, with healthcare and tech-related counters shoring up gains across all three major indices.
However, TA Securities expects investors to begin cashing out on the local market as the FBM KLCI closed at a fresh nine-month high yesterday.
"The local benchmark index is expected slip into profit-taking consolidation as investors reduce positions following recent gains, with sentiment further pressured by concerns over the U.S. government shutdown, prompting a cautious tone across regional markets," it said in its market commentary.
Rakuten Trade struck a more optimistic tone in its report, saying the recent buying suport illustrates the index should have more legs to climb going forward.
"Hopefully this will instigate the revival of retail participation in due course," it added. The broker expects a further push by the index into the 1,620-1,630 range today.
At 9am, the FBM KLCI was trading up 0.81 points to 1,621.68.
Healthcare group IHH rose 28 sen to RM8.22 while Hong Leong Bank gained 20 sen to RM21.
Actives included Camaroe rising 1.5 sen to 15.5 sen, VS Industry gaining three sen to 63 sen and Techbase adding 0.5 sen to 13 sen.
Other actively traded shares included SNS Network rising five sen to 74 sen, JCY putting on one sen to 38.5 sen and Notion VTec adding three sen to 68.5 sen.
