KUALA LUMPUR: The FBM KLCI started the day on firmer footing on Friday, tracking Wall Street’s record close, although gains were tempered by cautious regional sentiment and continued foreign fund outflows.
Overnight, U.S. equities ended mostly higher, with the Dow Jones Industrial Average climbing more than 1% to a record closing high ahead of the long holiday weekend, while the S&P 500 also edged higher.
The Dow rose 1.14% to 52,900.07, while the S&P 500 added 0.01 point to 7,483.24. The Nasdaq Composite, however, eased 0.80% to 25,832.67.
Back home, the FBM KLCI gained 7.5 points, or 0.45%, to 1,669.33 as of 9:14 am, after opening 3.9 points higher at 1,665.73.
Berjaya Research expects the FBM KLCI to trade on a softer note, as weaker-than-expected US jobs data could strengthen expectations of a more cautious Federal Reserve policy stance, prompting investors to reassess the outlook for global growth and risk assets.
“At the same time, the absence of fresh domestic catalyst alongside the exodus of foreign fund flow could potentially cap further gains,” the research house said.
For now, Berjaya Research said investors will continue to keep a close watch on regional market performance, global interest rate expectations and upcoming economic data for fresh directional cues.
“Technically, the key index has formed a bullish candlestick but remains below all its moving averages. The immediate resistances are located at 1,674-1,684 points. Near-term supports remain pegged at 1,647 points and 1,638 points, respectively,” it added.
Meanwhile, Rakuten Trade noted that market sentiment remains cautious, as reflected in the low daily trading volume of 2.7 billion shares.
“As such, we expect the ongoing consolidation to persist, with the index likely to fluctuate within the 1,650–1,670 range today,” it said.
Among the top gainers on Bursa Malaysia, Dutch Lady
rose 44 sen to RM32.50, Hong Leong Bank gained 12 sen to RM21.46, PPB Group added 11 sen to RM9.44, while Maybank climbed 10 sen to RM10.84.
Leading the losers, Nestle slid 52 sen to RM91.48, Kuala Lumpur Kepong fell 24 sen to RM20.72, Malaysian Pacific Industries lost 20 sen to RM47.86, and United Plantations declined 20 sen to RM33.28.
ACE Market newcomer Eckem was the most actively traded counter, with 42.8 million shares changing hands. The stock held steady at 12 sen, unchanged from its initial public offering (IPO) price of 12 sen per share.
