KUALA LUMPUR: The FBM KLCI opened higher on Monday but slipped into negative territory in early trade, tracking Wall Street's weaker performance last Friday as heightened US-Iran tensions dampened investor sentiment.
The FBM KLCI fell 5.52 points, or 0.33%, to 1,662.22 as of 9.25 am, weighed down by losses in heavyweight stocks. The benchmark index had opened 1.04 points higher at 1,668.78 earlier.
Among the decliners, Nestlé fell 46 sen to RM95.38, PETRONAS Dagangan shed 18 sen to RM18.42, Kuala Lumpur Kepong eased 16 sen to RM21.14, and Tenaga Nasional slipped 14 sen to RM14.20.
On the upside, F&N gained 40 sen to RM28.10, Malaysian Pacific Industries
rose 18 sen to RM47.18, ViTrox added 16 sen to RM7.40, while Sunway Construction climbed 16 sen to RM7.47.
Berjaya Research Sdn Bhd said the FBM KLCI is likely to remain under pressure in the near term as weak market sentiment and cautious investor positioning continue to weigh on performance.
The research house noted that the lack of strong domestic catalysts, combined with lingering concerns over the global interest rate outlook, ongoing geopolitical uncertainties, and profit-taking in selected heavyweight stocks, is expected to keep the benchmark index on the defensive.
While intermittent bargain hunting may emerge following the recent pullback, Berjaya Research expects gains to remain limited unless external risk appetite improves and institutional buying strengthens.
“Technically, the index drifted lower as the key index is nearing the immediate support at 1,660 points, with the next support at 1,647 points.
“Meanwhile, the near-term resistances are pegged at 1,684-1,693 points,” it said.
Rakuten Trade said current market levels present a solid accumulation opportunity, but advised investors to accumulate vigilantly.
“Although laggards may be on the radar, we believe planters should stay in the buying list. For today, we expect the index to hover within the 1,665-1,675 range,” it added.
