KUALA LUMPUR: The FBM KLCI inched higher at midday as mild buying interest helped lift the benchmark despite a broadly cautious market backdrop.
At 12.30 pm, the FBM KLCI rose 4.12 points, or 0.25%, to 1,629.79 after touching an intramorning high of 1,633.84.
Losers outpaced gainers 540 to 362, while 517 counters were unchanged. About 2.17 billion shares, valued at RM1.1bil, changed hands.
TA Securities said the FBM KLCI is likely to stay under pressure and continue its sideways drift in the coming week, with technical indicators showing persistent weakness on both the daily and weekly charts.
It noted that market activity is likely to remain subdued, with investors cautiously repositioning ahead of a series of earnings announcements from major domestic firms.
On the external front, TA Securities said fading expectations of a US Federal Reserve rate cut in December, coupled with concerns over stretched valuations in AI-related sectors, are expected to weigh on regional sentiment and reinforce the cautious tone.
“As for the index, immediate support is set at the 61.8% FR (around the 1,564 level), with stronger supports seen at the 50% FR (near 1,527) followed by the 38.2% FR (around 1,490).
“Immediate resistance will be the December 2024 high of 1,644, with the highs of 1,684 and 1,695 serving as tougher upside hurdles,” TA said.
Separately, Hong Leong Investment Bank Research said the FBM KLCI may see choppy trading ahead, in line with the sluggish performance on US and regional markets, with stiff resistance near the 1,645 level.
The research house said sentiment remains fragile amid lingering US–China trade tensions, fading expectations of a US Federal Reserve rate cut on Dec 13, the upcoming Sabah polls on Nov 29, and the earnings season reaching its peak over the next two weeks.
It added that geopolitical caution is also rising following comments by Japan’s Sanae Takaichi suggesting the country might respond militarily to a Taiwan invasion.
“Still, any pullback should be cushioned at the 1,600–1,610 zones, supported by a strengthening ringgit (up 7.6% year-to-date against the US dollar), attractive valuations (CY2026 price-earnings ratio of 14.1 times compared with the five-year average of 17.2 times), and near record-low foreign shareholding (18.8% as at October),” HLIB said.
On Bursa Malaysia, F&N emerged as the top gainer, surging 72 sen to RM33.18. It was followed by Nestle, which climbed 40 sen to RM113.90, Allianz-PA, up 30 sen to RM18.50, and Hong Leong Industries, which added 30 sen to RM15.10.
Among the decliners, Kuala Lumpur Kepong slipped 18 sen to RM21.08, SAM Engineering fell 16 sen to RM4.30, Vstecs eased 14 sen to RM4.12, and UWC shed 14 sen to RM3.70.
