KUALA LUMPUR: Malaysian stocks hovered near their previous day's close amid ongoing caution over developments surrounding the US-Iran peace negotiations.
According to Apex Securities, investors were "cautiously optimistic" as they continued to monitor progress in the Middle East as well as assess the potential impact of the ongoing wave of mega AI-related IPO in the US on global fund flows.
The benchmark FBM KLCI was nearly flat against the 1,700 psychological support after the previous day's decline. At 9.10am, the market barometer was up a marginal 0.37 points to 1,701.21.
Apex said the index is expected to be range-bound as investors balance improving geopolitical sentiment against local political uncertainties.
"Nevertheless, Malaysia's growing role as a regional AI infrastructure hub and continued investment activity are expected to provide underlying support for the local market, although continued foreign fund outflows may cap near-term upside," said the research firm in its market outlook.
In its technical reading, Apex said the FBM KLCI remains at a critical juncture, hovering above the 20- and 120-day moving averages.
"The index remains capped below key resistance. Immediate downside risk has eased, but the Double Top pattern stays intact unless price breaks decisively above the key resistance at 1,720 – 1,740."
In the spotlight, Ajinomoto Malaysia surged RM3.78 to RM18.98 as trading resumed after a one-day suspension. It was announced yesterday that the company's Japanese parent is proposing a privatisation exercise at RM20 a share, following which the Malaysian unit would be delisted.
The top traded stock in early trade was HSS Holdings, making its ACE Market debut after a RM13.5mil initial public offering. The share was up one sen to 19 sen.
