KUALA LUMPUR: The FBM KLCI opened higher in early trade, supported by bargain hunting after recent losses, despite overnight weakness on Wall Street that kept global sentiment cautious.
Overnight, the Dow Jones Industrial Average fell 0.03% to 52,305.24, the S&P 500 lost 0.22% to 7,483.23 and the Nasdaq Composite lost 0.66% to 26,040.03.
The FBM KLCI rose 4.48 points, or 0.27% to 1,661.41 at 9.11 am. The index opened 1.99 points lower at 1,658.82 earlier.
Among the gainers, Nestle rose 74 sen to RM92.50, Critical Holdings gained 21 sen to RM1.62, United Plantations climbed 14 sen to RM33.12, and Eco-Shop Marketing advanced six sen to RM1.42.
On the other hand, Malaysian Pacific Industries
slid 60 sen to RM48.40, F&N eased 42 sen to RM27.52, Kelington Group declined 23 sen to RM8.02 and UWC lost 14 sen to RM6.42.
Berjaya Research Sdn Bhd said the FBM KLCI may trade on a downward bias in the near term due to weak domestic catalysts and global macro uncertainty following cautious U.S. Federal Reserve commentary on interest rates.
The research house said market sentiment will likely be driven by upcoming U.S. non-farm payrolls and unemployment data, which could offer clues on the U.S. labour market and influence expectations for the Federal Reserve’s policy path.
Berjaya Research said investors will continue to adopt a wait-and-see approach pending clearer signals on the global interest rate outlook and external trade developments.
“Technically, the key index has formed a bearish candlestick to extend its pullback trend. Near-term supports are now shifted to 1,647 points and 1,638 points, respectively.
“Meanwhile, the immediate resistances are pegged at 1,674-1,684 points,” it said.
Hong Leong Investment Bank Research said the KLCI is expected to remain choppy and headline-driven after a cautious July debut, with sentiment influenced by US–Iran diplomacy developments and hawkish Federal Reserve expectations weighing on the ringgit and trade flows.
Hong Leong Investment Bank Research said domestically, persistent foreign selling is expected to weigh on the market. It added that a rising political risk premium, amid the possibility of an early GE16, could further dampen sentiment.
The research house also noted that the proposed expansion of the FBM KLCI from 30 to 50 constituents, aimed at broadening market representation and improving sector diversification, may contribute to index-related adjustments, with banking and utilities likely to see the largest weight reductions.
