KUALA LUMPUR: The FBM KLCI managed a meagre rebound in early Wednesday trade after the previous day's sell-off as global tech shares took a beating on profit-taking activities.
Overnight, the tech-heavy Nasdaq dropped 2.2% as traders cashed out of Big Tech following the recent rally, raising anxieties that the overheated sector could be due for a sustained correction.
Apex Securities said investors on Bursa Malaysia are expected to remain selective amid the profit-taking in AI-related counters, although the structural demand for AI and data centre investments is expected to remain intact.
"Domestically, the FBM KLCI is expected to trade in a range-bound manner as investors balance improving investment prospects 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," it said in its market outlook.
It added that the sharp decline in the previous session has led the index to retest the neckline of a double top formation near the 1,675 level, signalling broad bearish momentum.
"A decisive break below the neckline support could confirm the bearish reversal pattern and trigger further downside pressure, potentially leading to a deeper corrective phase. Immediate resistance is seen at 1,700."
At 9.10am, the FBM KLCI was up 4.02 points or about a quarter percent to 1,680.49. Leading gainers were IHH up 13 sen to RM8.69, Nestle rising 76 sen to RM95.76, Hong Leong Bank adding 20 sen to RM21.92 and PETRONAS Gas climbing 12 sen to RM17.52.
Among the most active shares, DNex was flat at 42.5 sen, Pentech dropped 1.5 sen to 31.5 sen and Tanco was unchanged at 13.5 sen.
AirAsia X
rose one sen to RM1.32 while Top Glove added 1.5 sen to 70.5 sen.
