KUALA LUMPUR: The FBM KLCI opened higher Tuesday, supported by gains in heavyweight stocks, amid cautious investor sentiment and ongoing window-dressing activities.
The 30-stock index rose 7.08 points, or 0.44%, to 1,631.65 at 9:22 am, after opening at 1,627.07, up 2.50 points from yesterday’s close of 1,624.57.
“The FBM KLCI may slip into a consolidative phase as investors could look to lock in profits following the recent strong gains,” Berjaya Research Sdn Bhd said.
The research house said that while selective buying in heavyweight stocks may provide short-term support, overall market sentiment is expected to turn cautious as investors reassess valuations and await new catalysts.
It noted that the external uncertainties surrounding the global interest rate direction, stretched valuations, and the pullback on Wall Street overnight may further temper risk appetite.
“Technically, the key index has formed a bullish candlestick to recover all its previous session’s losses.
“However, a consolidation beckons as investors could seek to lock in yesterday's sharp gains with the immediate supports pegged at 1,610-1,600 points. On the upside, the immediate resistances are located at 1,628-1,638 points,” Berjaya Research said.
Meanwhile, Malacca Securities expects the local bourse to find support from ongoing window-dressing activities, despite the lacklustre performance on Wall Street overnight.
“Ultimately, we anticipate Bank Negara keeping the OPR steady at 2.75%, which should add to the case for a strengthening ringgit.
“These factors would bode well, especially for domestic-driven sectors like banking, consumers, REITs, and property,” it said.
Among the gainers on Bursa Malaysia, Nestlé rose RM1.30 to RM112.90, Kuala Lumpur Kepong added 36 sen to RM19.46, PETRONAS Dagangan gained 32 sen to RM20.92, and Allianz climbed 24 sen to RM19.74.
On the downside, Tenaga slipped 16 sen to RM13.16, Gamuda fell 10 sen to RM5.20, MR DIY lost seven sen to RM1.56, and Axiata declined six sen to RM2.56.
Overnight, the Dow Jones Industrial Average fell 0.90% to 47,289.33, the S&P 500 dropped 0.53% to 6,812.63, and the Nasdaq Composite declined 0.38% to 23,275.92.
