KUALA LUMPUR: The FBM KLCI opened slightly higher on Monday but remained range-bound as it is expected to consolidate following the previous week's strong gains.
With no sign of a permanent Middle East deal in the horizon, investors are cashing in on the recent rally, which has taken the blue-chip FBM KLCI to overbought levels of trading.
At the opening bell, the market barometer was up 5.94 points to 1,754, although any further advance was capped by selling pressure.
TA Securities said the index is expected to remain in a profit-taking, consolidation phase in the near term as the short-term momentum indicators ease from overbought levels and trend signals stay muted.
"External headwinds are likely to intensify the pressure, with investors remaining highly sensitive to developments in the Middle East crisis, where persistent tensions are driving volatility in energy prices and heightening inflation risks.
It added that market participants are also anticipated to adopt a cautious, wait-and-see stance ahead of the upcoming summit between US President Donald Trump and Chinese President Xi Jinping.
However, the research firm noted that weekly indicators continue to lean bullish, suggesting that the medium-term trend retains a positive bias despite near-term consolidation.
"As for the index, immediate support remains at the 1,700 psychological level, with stronger support coming from the March 2026 low (1,664), followed by the 76.4%FR (1,610). Meanwhile, key overhead resistance will be the 138.2%FP (1,805), followed by tougher upside hurdles at the 150%FP (1,842) and 161.8%FP (1,879) ahead."
Glove makers saw active interest in early trade, with Top Glove rising 2.5 sen to 78.5 sen and Hartalega
gaining four sen to RM1.27.
Rallying stocks included Hume Industries gaining 12 sen to RM3.23, IOI Properties adding 11 sen to RM4.59 and SD Guthrie climbing seven sen to RM6.13.
