KUALA LUMPUR: The FBM KLCI hovered near weekly highs following the previous day's rally triggered by US President Donald Trump stepping back from the tariff threats on Europe.
As investors pressed pause on the rally to digest recent gains, the bechmark index slipped back 1.3 points to 1,715.84 at 9am.
TA Securities said the technical indicators are strengthening, pointing to further gians in the local benchmark, underpinned by firmer regional sentient.
"Immediate resistance is capped 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). 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)," it said in a note.
Apex Research said in a report the FBM KLCI is expected to maintain a constructive bias, supported by sustained institutional participation and robust domestic fundamentals.
"Although data surprises may drive short-term volatility, the local market should remain underpinned by continued foreign interest and selective buying in large-cap stocks with clear earnings visibility," it added.
Among blue chips, Hong Leong Bank dropped 20 sen to RM24, Sunway shed six sen to RM5.51 and Nestle slipped 50 sen to RM116.50.
NationGate, which rallied yesterday on news it the tax authority had found no irregularities in its records, was the top traded share in early trade. It put on three sen to RM1.22 on 18.75 million shares done.
Also seeing active interest, Velesto
was flat at 31.5 sen and Capital A gained one sen to 53 sen.
