KUALA LUMPUR: The FBM KLCI was flat at the opening bell as traders searched for trading direction amid a lack of new catalysts.
At 1,735.85, the Malaysian key index was up just 0.1 points in subdued trading.
According to Apex Securities, the weak US jobs report for July had helped to ease inflation fears, alleviating the risk of a more hawkish Federal Reserve.
Meanwhile, the rebound in chip and software stocks also suggests that concerns over AI-related overcapacity may be stabilising, it said.
However, a further deterioration in the labour market could increasingly raise concerns over economic growth rather than simply reinforce expectations for lower inflation.
The research firm said the ongoing conflict in the Strait of Hormuz remains a key overhand as Tehran has diend direct talks with the US, despite the latter claiming a deal was nearing.
In its technical reading, Apex said the FBM KLCI has remained within a downward-sloping channel since peaking in January.
"Thursday's pullback also formed a Dark Cloud Cover candlestick, signalling renewed bearish pressure.
"We therefore expect the index to trade weaker in the week ahead. 1,735 is the immediate support, followed by 1,700 should profit-taking emerge. Meanwhile, the 1,760–1,770 resistance zone is the stiff resistance," it said in a note.
There was active buying interest in semiconductor-related plays. Pentamaster leapt 19 sen to RM5.66, Sam Engineering gained 10 sen to RM4.35 and Frontken climbed seven sen to RM5.32.
Of actives, Dnex was up 1.5 sen to 48.5 sen, HHRG gained two sen to 14 sen and Nationgate rose five sen to RM1.48.
