KUALA LUMPUR: The FBM KLCI rose in early trade on Wednesday, shrugging off mixed performances on Wall Street overnight as investors remained cautiously optimistic ahead of key economic events.
Overnight, the S&P 500 declined 0.16% to end the session at 6,644.31 points. The Nasdaq declined 0.76% to 22,521.70 points, while the Dow Jones Industrial Average rose 0.44% to 46,270.46 points.
The benchmark FBM KLCI rose 7.51 points, or 0.47% to 1,618.97 at 9.18am. The index opened 3.61 points higher at 1,615.07 earlier.
Gainers included PETRONAS Gas, which jumped 54 sen to RM19.10, Allianz, which added 24 sen to RM18.42, 99 Speed Mart, which gained 14 sen to RM3.17, and Genting, which climbed 13 sen to RM3.14.
Among the decliners were F&N, which slid 16 sen to RM27.94, Dutch Lady
, which fell eight sen to RM26.70, UMS Integration, which lost six sen to RM4.58, and Malayan Cement, which declined seven sen to RM6.57.
Rakuten Trade said it suspects foreign funds remain net sellers and expects the index to trend within the 1,605 to 1,620 range today.
Meanwhile, Berjaya Research Sdn Bhd said that market sentiment is likely to remain cautious, taking cues from the continued volatility on Wall Street overnight.
The research house noted that attention will be focused on U.S. Federal Reserve Chair Jerome Powell’s upcoming speech for further cues on the monetary policy trajectory, which could influence regional fund flows and risk appetite.
Meanwhile, China’s upcoming inflation and producer price index (PPI) data to be released later today will also be closely monitored for insights into the strength of its economic recovery.
“Technically, the FBM KLCI formed a bearish candle, but managed to defend the 1,611 near-term support level. Further pullback could send the key index to revisit the next support at the 1,600 psychological level.
“On the other hand, a rebound beyond the 1,622 level may lift the key index towards the next resistances located at the 1,635 points and 1,657 points respectively,” Berjaya Research said.
