KUALA LUMPUR: The FBM KLCI advanced in early trade on Thursday, bucking overnight losses on Wall Street as bargain-hunting activities and renewed investor optimism lifted the benchmark index above the 1,720 mark.
Overnight, the Dow Jones Industrial Average 0.98% to 51,492.55 after two straight sessions of record-high closing levels. The S&P 500 lost 1.21% to 7,420.10 and the Nasdaq Composite lost 1.34% to 26,021.66.
Back home, the FBM KLCI rose 11.28 points, or 0.65% to 1,721.18 at 9.20 am after opening up 12.86 points at 1,722.35.
Among the gainers, Hong Leong Industries rose 42 sen to RM18.90, Allianz added 38 sen to RM21.38, Hong Leong Bank gained 22 sen to RM22.22 and Dutch Lady
climbed 24 sen to RM32.50.
In contrast, Malaysian Pacific Industries slid 80 sen to RM48.50, Nestle lost 72 sen to RM96.08, Paragon plunged 68 sen to RM1.61 and UWC declined 15 sen to RM6.05.
Berjaya Research cautioned that the FBM KLCI’s recent rally warrants prudence after the benchmark index broke above the key 1,700-point psychological level.
While easing geopolitical tensions and resilient domestic fundamentals have supported market sentiment, the research house said concerns over a prolonged high-interest-rate environment, following the US Federal Reserve’s latest hawkish projections, could cap further gains.
“While the easing geopolitical concerns and resilient domestic fundamentals are encouraging, concerns over higher for longer interest rate following the latest hawkish projection by the FOMC could temper the recent positive strides,” it said.
Berjaya Research said the FBM KLCI has formed a bullish candlestick pattern, enabling it to break above the key 1,700-point psychological level.
Following the breakout, the research house expects the benchmark index to face its next resistance levels at 1,718 and 1,732 points.
“Following the aforementioned breakout, the next resistances are now pegged at 1,718-1,732 points,” it said.
Meanwhile, near-term support has shifted higher to 1,700 points, followed by 1,686 points.
Rakuten Trade said bargain-hunting activities dominated trading sentiment, with daily market volume surpassing the five billion-share mark.
The brokerage expects the FBM KLCI to extend its upward momentum and trade within the 1,690 to 1,710 range today.
“Bargain hunting activities took centre stage as the daily volume surpassed the 5 billion shares level,” it said.
