KUALA LUMPUR: The FBM KLCI trended lower in early morning trading as traders awaited a spark to reignite buying momentum.
TA Securities said stocks are expected to consolidate with a downward bias as as investors adopt a wait-and-see approach with key US economic data scheduled for release later this week.
"Immediate support stays at 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). Immediate resistance is kept at 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)," it said in its technical note.
Rakuten Trade said in its own report the profit-taking in the previous session was a mild correction followig the run-up in the previous month.
"We view this as a healthy development and expect the local bourse to resume its uptrend anytime soon. As such, we expect the index to hover within the 1,670-1,680 range today," it added.
Malacca Securities opined that the firmer Wall Street movements, lower overnight policy rate environment and supportive structural government drivers are creating an opportune time for the FBM KLCI to edge higher.
The research firm pointed to pawnbroker Well Chip as a potential beneficiary of higher gold demand, and the RM100 SARA aid and stronger ringgit as support for consumer heavyweights such as 99 Speed Mart and Farm Fresh, particularly under the Visit Malaysia 2026 theme.
Meanwhile, M&E players like Powerwell stand to benefit from ongoing interest in data centre development, while the Group’s recent acquisition and Bangladesh development are expected to support earnings stability
Taking a dip on Wednesday, Nestle shed RM1.30 to RM119, Kuala Lumpur Kepong dropped eight sen to RM19.70 and Gmauda slid six sen to RM4.88.
Top actives were MMAG up 0.5 sen to eight sen, Tanco gaining one sen to RM1.20 and Pharmaniaga
rising one sen to 28.5 sen.
