KUALA LUMPUR: The FBM KLCI opened lower on Friday as investors locked in profits following recent gains, despite positive cues from Wall Street and easing geopolitical tensions in the Middle East.
Overnight, the Dow Jones Industrial Average rose 0.14% to 51,564.70, the S&P 500 gained 1.08% to 7,500.58 and the Nasdaq Composite advanced 1.91% to 26,517.93.
Meanwhile, a ceasefire between the United States and Iran took effect, allowing vessels to resume transiting the Strait of Hormuz despite US President Donald Trump's warning that attacks could resume if Iran breached the agreement, signalling a recovery in oil, gas and other cargo flows disrupted by the conflict.
The FBM KLCI slipped 5.69 points, or 0.33%, to 1,705.70 at 9.28am, dragged lower by banking stocks after opening 7.35 points lower at 1,704.04
Rakuten Trade expects trading on Bursa Malaysia to remain subdued, with the FBM KLCI likely to move within the 1,705-1,715 range today.
The brokerage noted that crude oil prices were largely unchanged despite the reopening of the Strait of Hormuz, with Brent crude hovering around US$79 a barrel.
Meanwhile, Berjaya Research Sdn Bhd said the FBM KLCI could be vulnerable to a near-term pullback after its recent rally as investors may become more cautious and engage in profit-taking.
“Market participants will also closely monitor the release of Malaysia’s latest inflation data slated to be released later today, with a benign reading likely to reinforce expectations of a stable domestic monetary policy backdrop, while any upside surprise could weigh on sentiment by fuelling concerns over interest rate expectations.”
The research house said external factors will continue to dictate market sentiment, noting that the FBM KLCI gave up most of its intraday gains after opening with a gap-up.
“A potential pullback could be on the cards with the near-term support envisaged at the 1,700 psychological level, followed by 1,686 points. Meanwhile, the immediate resistances are pegged at 1,718-1,732 points,” Berjaya Research said.
Among the decliners, Hong Leong Bank shed 16 sen to RM22.02, Hong Leong Industries fell 14 sen to RM19.00, Press Metal
lost 13 sen to RM8.39 and PETRONAS Chemicals slipped 12 sen to RM8.40.
Leading gainers included Malaysian Pacific Industries, which surged 84 sen to RM49.40, United Plantations, which rose 30 sen to RM32.10, while PPB Group and UWC added 18 sen each to RM9.48 and RM6.29, respectively.
