KUALA LUMPUR: The domestic market is expected to move sideways as investors vacate their desks for the year-end in the absence of fresh catalysts to shore up buying interest.
The FBM KLCI has inched higher over the last two trading sessions, suggesting underlying support remains firm. At 9am on Wednesday, the benchmark index fell 2.75 points to 1,681.78.
Following the recent rally, TA Securities has revised higher its technical trading levels for the FBM KLCI for the coming year.
"Immediate resistance is revised upwards to the October 2015 high of 1,727, with next upside hurdle coming at the 123.6%FP (1,759),
followed by tougher resistance at the 138.2%FP (1,804).
"Immediate support is also revised higher to the September 2016 low of 1,645, with stronger support coming from the 76.4%FR (1,610) followed by the 61.8%FR (1,564)," said the research firm in a note.
Rakuten Trade said in its review the local index continues to surprise as it ended the previous day on a multi-year high spurred by persistent stock accumulation by local institutions.
"Despite the constant net foreign outflows, market undertone remains steadfast.
"However, retail participation has been weak as depicted by the low daily volume, but we believe this may improve overtime once the market liquidity improves within the bigger caps space."
Malacca Securities, meanwhile, said it anticipates the FBM KLCI will extend its momentum to end 2025 at a higher level, supported by buying interest in the banking heavyweights.
"We favour Maybank, CIMB and RHB Bank
due to their attractive dividend yields of over 5%," it said.
With the sluggish start on the market, laggards included Vitrox down seven sen to RM4.08, Varia falling four sen to 80 sen and United Plantations sliding six sen to RM30.18.
Blue chips dragging on the FBM KLCI included Press Metal dropping four sen to RM7.18, SD Guthrie falling six sen to RM5.69, Maybank shedding four sen to RM10.46 and QL Resources slipping four sen to RM10.46.
