KUALA LUMPUR: The FBM KLCI continued to hover in a consolidation pattern as investor attention shifted to the US labour market.
Apex Securities said on the US economic agenda this week, Wednesday’s ISM manufacturing survey and Thursday’s non-farm payrolls will test the durability of the rate-cut narrative that has underpinned the recent risk-on move.
"Softening confidence and hiring signals leave the data finely balanced: a weak print could embolden expectations of Fed easing, while resilience would challenge the rally’s momentum," it said in its market outlook.
The research firm said Malaysia's technology sector remains in focus, with chip- and EMS-related stocks tracking global semiconductor trade as well as US jobs data.
Meanwhile, construction could stay in favour as high-tech facility and infrastructure contracts continue to flow, and REITs should remain defensive if softer data revives rate-cut hopes.
At 9.13am, Malaysia's market barometer was flat at 1,664.11. Apex said the index remaines pinned below the 1,680 neckline of a double-top pattern, which points to a lack of buying conviction.
"The 1,640-1,620 zone remains the downside reference, as only a close back above the 1,680 band would begin to neutralise the bearish setup," it said.
Tech stocks were seen picking up in early trade, led by MPI jumping 54 sen to RM50.20, Vitrox gaining 20 sen to RM7.96 and KESM adding 13 sen to RM4.16.
Of actives, Tanco was flat at 17.5 sen, Dnex gained two sen to 43.5 sen and Salutica dropped one sen to nine sen.
