KUALA LUMPUR: The FBM KLCI was little changed on Thursday despite growing optimism and buying momentum in regional markets over a potential resolution to the Middle East conflict.
The domestic market's benchmark index has moved in a sideways channel during the week, reflecting ongoing uncertainty over the outcome of the war despite an abundance of positive messaging from US President Donald Trump.
Brent crude prices are idling near the U$95 a barrel level as traders await more developments in the reopening efforts of the Strait of Hormuz.
At 9am, the FBM KLCI was up 1.44 points to 1,684.86, a meek start in comparison to the rally on Wall Street that saw the S&P500 and Nasdaq reach all-time closing records.
According to Apex Research, the Malaysian market is expected to remain headline-drive, balancing energy sector tailwinds against the prospect of a sharp oil price correction should talks produce a breakthrough before the ceasefire expires.
"With the S&P500 and Nasdaq hitting new highs and Asian indices resuming their uptrend, the FBM KLCI may attempt to reclaim its uptrend line.
"However, failure to sustain above this level could see selling pressure persist. Immediate downside risk is seen at 1,665, with a break below reinforcing bearish momentum and signalling sustained near-term weakness," said the research firm in its note.
On the blue-chip index, Nestle rose 48 sen to RM99.48, Sime Darby gained three sen to RM2.22 and MISC rose four sen to RM8.22.
Travel group Golden Destinations, meanwhile, was up 3.5 sen to 48.5 sen on its debut on the ACE Market. It topped the actives list with 18.65 million shares traded at the time of writing.
Other actives included Velesto
dropping 0.5 sen to 32.5 sen and MMAG unchanged at 3.5 sen.
