KUALA LUMPUR: The FBM KLCI edged higher in early trade, rebounding from recent weakness despite cautious sentiment following mixed overnight moves on Wall Street and ahead of a key U.S. inflation report.
Overnight, the Dow Jones Industrial Average rose 0.17% to 50,872.11, the S&P 500 lost 0.26% to 7,386.65 and the Nasdaq Composite lost 0.97% to 25,678.82.
The FBM KLCI opened 0.55 of a point higher at 1,676.05 and extended its gains to rise 2.31 points, or 0.14%, to 1,677.81 as at 9.18am.
Berjaya Research Sdn Bhd said the FBM KLCI is showing signs of stabilisation following recent volatility, although prospects for a sustained recovery remain uncertain.
“Near-term direction will be heavily influenced by external cues with investors keeping a close watch on the upcoming U.S. inflation print slated to be released later tonight, which is a key data point that could meaningfully shift market expectations around the Federal Reserve's rate trajectory,” it said.
The research house noted that a hotter-than-expected reading risks reigniting risk-off sentiment and weighing on regional equity markets, including Bursa Malaysia and vice versa.
“Technically, the key index has formed a bearish candlestick with the immediate support located at 1,672 points and thereafter at 1,665 points,” Berjaya Research said.
On the upside, near-term resistance is pegged at the psychological 1,700-point level, with the next hurdle at 1,707 points.
Berjaya Research said broader market sentiment is expected to remain cautious as investors await key U.S. inflation data due later tonight.
“Until greater clarity emerges on the Federal Reserve's rate path, markets are likely to oscillate within a tight range,” it added.
Meanwhile, Rakuten Trade said the broader market remains well supported at current levels, although the FBM KLCI is still trading within a corrective phase.
“Thus, in the absence of any clear catalysts, we expect the index to oscillate within a narrow range of between 1,670 and 1,680 today,” it added.
Among the top gainers on Bursa Malaysia, Concrete Engineering Products
rose 20 sen to RM5.10, Ajinomoto added 12 sen to RM15.60, TMK Chemical climbed eight sen to RM2.15, while IOI Corporation gained six sen to RM4.28.
Among the decliners, Nestle slid 72 sen to RM93.72, Tanco Holdings eased 30 sen to 50 sen, Kelington Group lost 14 sen to RM7.51, and Unisem declined 12 sen to RM4.71.
