KUALA LUMPUR: With Johor's election now in the rearview mirror, the domestic market could be driven forward by improvement in the global sentiment.
Investors have largely shrugged off the renewed conflict between the US and Iran, going by the rally in global markets as recent tech earnings revived optimism in AI-drive tech stocks.
The FBM KLCI was down 1.96 points to 1,689.53 at 9.10am, with some mild profit-taking after last Friday's 0.83% gain.
The benchmark index has recovered past a critical 1,674 level, according to Apex Securities, as net foreign buying showed local sentiment catching up with the firmer external backdrop.
"The rebound above the 9-day and 20-day moving averages suggests that near-term sentiment has improved, although the FBM KLCI index remains below key resistance levels.
"While the immediate downside risk has moderated, the Double Top pattern remains valid unless the KLCI breaks decisively above 1,695," said the research firm in its technical outlook.
"As long as the index is able to break above 1,695, further recovery towards 1,700 and 1,720 is likely. However, a break below the 1,674-neckline support would reaffirm the bearish setup and could trigger a decline towards 1,660."
The financial services sector, which led last week's rally, was seen dipping. Traders took profit out of heavyweight banks including, Maybank down four sen to RM10.86, CIMB falling two sen to RM7.62, Ambank sliding five sne to RM6.45 and RHB dipping one sen to RM8.28.
PETRONAS Chemicals jumped 18 sen to RM4.48 as oil prices spiked after Iran escalated its strikes on Gulf states in retaliation for US attack.
At the time of writing, Brent crude futures for September delivery were up 4% to US$79 a barrel.
