KUALA LUMPUR: The FBM KLCI recovered some ground by the lunch break, supported by selective bargain-hunting despite lingering caution among investors.
At midday, the FBM KLCI was little changed, edging down 0.66 of a point, or 0.04%, to 1,665.24, after recovering from its intramorning low of 1,663.12.
Total trading volume stood at 1.41 bil shares valued at RM927.2mil. Market breadth was mixed, with 377 gainers versus 518 decliners.
Apex Securities said the FBM KLCI is expected to maintain a constructive bias, underpinned by sustained institutional participation and positive spillover from the technology-led rebound on Wall Street.
It noted that investors will be closely watching this week’s 3Q U.S. GDP release and initial jobless claims for further guidance on the Federal Reserve’s policy direction, while domestically, attention will turn to the inflation print for insights into underlying economic momentum.
“Buying interest in Malaysian equities is likely to be supported by year-end institutional rebalancing and selective accumulation in heavyweight and domestically oriented stocks.
“We continue to hold a positive view on selective power-ancillary and renewable energy names, underpinned by long-term energy transition trends that support earnings resilience.
“In addition, improving global tech sentiment has helped stabilise the AI theme, which could provide a near-term sentiment tailwind for selected local technology and AI-related stocks,” Apex said.
Meanwhile, TA Securities said that with technical momentum continuing to improve after a second consecutive week of recovery, near-term sentiment for the FBM KLCI is poised to strengthen as investors gradually regain confidence.
It added that the rebound has helped to ease recent selling pressure, raising prospects for the index to consolidate above key support levels and potentially support window-dressing activities heading into the year-end.
On the external front, TA Securities said a softer-than-expected U.S. inflation print has reinforced expectations of Federal Reserve rate cuts in 2026, as easing price pressures lessen the need for a restrictive policy stance.
“As for the index, immediate resistance is capped at the August 2024 high of 1,684, with the December 2020 high of 1,695, and the 123.6% Fibonacci projection (1,759) acting as tougher upside hurdles.
“Meanwhile, immediate support remains anchored at the 76.4% Fibonacci retracement (1,610), with stronger support coming from the 61.8% FR (1,564) and the 50% FR (1,527),” TA Securities said.
Among the decliners, Nestle slid RM1.40 to RM114.90, BLD Plantation
lost RM1.04 to RM15.00, Dutch Lady fell 42 sen to RM30.08, while F&N gave up 42 sen to RM35.90.
On the upside, Hong Leong Financial Group rose 28 sen to RM18.54, Malayan Cement added 24 sen to RM7.14, Malaysian Pacific Industries gained 24 sen to RM32.44, and Coastal Contracts climbed 18 sen to RM1.40.
