KUALA LUMPUR: A rebound in global technology shares is expected to lead Malaysia semiconductor and tech-related plays higher after a bout of profit-taking, says Apex Securities.
In a recent note, the research firm said Monday's rebound in technology and semiconductor counters suggests the recent sell-off in AI hardware was largely profit-taking rather than a shift in the structural demand outlook.
However, it said the broader market sentiment may stay cautious in the near-term even as the risk appetite improves.
"Domestically, Malaysia’s growing role as a regional AI infrastructure hub, resilient investment activity and Bank Negara Malaysia’s measures to support the ringgit should continue to underpin sentiment, with the return of foreign buying a tentative positive, although political uncertainty ahead of the general election may cap near-term upside," it said.
Meanwhile, financial services are expected to remain resilient on solid fundamental despite the near-term political uncertainties. The transport and logistics sector could benefit from easing fuel costs if crude oil prices remain subdued, with aviation counters set to benefit most, while energy-related counters may continue to face selling pressure amid softer oil prices.
The FBM KLCI was up 3.11 points to 1,669.02 on Tuesday, a mild rebound as the benchmark continues to trade below the neckline of its "double-top pattern".
"A sustained close below the 1,680 neckline would expose the next support in the 1,640-1,620 zone. Immediate resistance is seen at the 200-day SMA of 1,674 and the 1,680 neckline, followed by the 1,689-1,693 EMA cluster. The cautious tone continues to reflect broader concerns surrounding the upcoming election cycle," said Apex.
On the blue-chip index, Hong Leong Bank rose six sne to RM21.46, Maybank gained two sen to RM10.82 and MISC added four sen to RM7.85.
Among the day's top actives, Liftech was down one sen to 28 sen as it made its debut on the ACE Market. Tanco rose 0.5 sen to 15 sen and Senhengin gained 0.5 sen to 15 sen.
