KUALA LUMPUR: The FBM KLCI opened higher on Thursday before slipping into negative territory in early trade as investors locked in profits following the benchmark index's recent rally.
Overnight, the Dow Jones Industrial Average closed at a record high as optimism over progress in Iran peace talks lifted investor sentiment.
The Dow rose 0.49% to 54,349.06, while the S&P 500 eased 0.17% to 7,723.52 and the Nasdaq Composite declined 0.83% to 26,363.44.
Back home, the market barometer fell 0.78 point to 1,747.39 at 9.16 am after opening 2.83 points higher at 1,749.65.
Among the top gainers, Nestle rose 50 sen to RM103, PETRONAS Gas added 16 sen to RM17.60, Telekom Malaysia gained 10 sen to RM8 and Theta Edge climbed 7.5 sen to 62.5 sen.
In contrast, technology and semiconductor stocks came under profit-taking pressure in early trade.
Malaysian Pacific Industries
dropped 44 sen to RM46.50, KESM slipped eight sen to RM4.28, Frontken fell four sen to RM5.17, ViTrox lost five sen to RM9.05 and Pentamaster retreated four sen to RM5.66.
Berjaya Research Sdn Bhd believes that the FBM KLCI could be vulnerable to a bout of near-term profit-taking following its recent string of advances, as investors lock in gains accumulated over the past few sessions.
Nevertheless, the research house said the broader market sentiment is expected to remain constructive, underpinned by resilient domestic economic conditions, improving corporate earnings prospects and continued optimism over the technology sector.
“Investors will also be keeping a close watch on upcoming economic data releases and developments in the global trade landscape for fresh market catalysts,” Berjaya Research said.
Technically, the research house said the FBM KLCI has gapped higher and formed another bullish candlestick, although the relative strength index (RSI) is approaching overbought territory.
“The immediate resistances have now shifted to 1,756 points, followed by 1,770 points. Meanwhile, near-term supports are pegged at 1,732 points and 1,720 points respectively,” it added.
Meanwhile, Rakuten Trade said investor sentiment has strengthened amid easing geopolitical tensions, lower crude oil prices and improving global risk appetite.
It noted that continued buying interest in heavyweight stocks, coupled with Malaysia's resilient economic outlook, is expected to support the local bourse.
“While some profit-taking may emerge following the recent gains, the broader market trend remains constructive.
