KUALA LUMPUR: The FBM KLCI was slightly lower as trading commenced on Monday, with investors taking a breather after closing out the previous week with two strong sessions of gains.
TA Securities said the rebound in the FBM KLCI over the past week has provided a welcome lift to investor sentiment. Most trend and momentum indicators have turned positive, which suggests scope for further upside in the near term, it said.
"This improvement reflects a shift in technical dynamics, where the index has managed to stabilise after recent weakness and is now showing signs of regaining traction.
"However, sustained recovery will hinge on stronger buying momentum and broader market participation, which are essential to underpin the rally and support window-dressing activities as the year-end approaches," said the research firm in a note.
Rakuten Trade noted that local institutions have been net buyers on the market, possibly owing to some window-dressing activities.
"As advocated, we see the MYR currently hovering at 4.09 vs the USD as a catalyst hence expect the index to trend within the 1,630-1,645 range today," it said in its outlook.
At 9am Monday, the benchmark index was down 2.03 points to 1,635.08. Leading laggards included SD Guthrie dropping eight sen to RM5.31, Gamuda shedding six sen to RM4.79 and AMMB sliding three sen to RM6.17.
Of actives, Sentoria rose 0.5 sen to 2.5 sen, Orkim jumped 6.5 sen to RM1.02 and EWI Capital slid 1.5 sen to 22 sen.
