KUALA LUMPUR: Gains in selected blue chips lifted the FBM KLCI in early trade on Monday, as the benchmark index rebounded from last week’s losses.
The FBM KLCI rose 3.12 points, or 0.18% to 1,711.22 at 9.18am. The index opened up 1.6 points at 1,709.70 earlier.
Among the gainers, Nestlé rose 26 sen to RM95.10, Hong Leong Bank gained 22 sen to RM23.88, Hong Leong Financial Group added eight sen to RM19.08, while PETRONAS Gas climbed eight sen to RM17.34.
In contrast, Ta Ann slid 14 sen to RM6.05, Carlsberg fell 10 sen to RM12.92, United Plantations eased 12 sen to RM31.94, while Kelington Group lost eight sen to RM8.61.
Berjaya Research Sdn Bhd expects the FBM KLCI to remain range-bound in the near term amid cautious sentiment and continued profit-taking following recent gains.
The research house said external developments will remain a key focus in determining the direction of the local bourse, particularly geopolitical developments in the Middle East and their impact on oil prices.
Investors will also closely monitor US jobs data after a stronger-than-expected reading for August reinforced expectations surrounding the Federal Reserve’s interest rate outlook.
“With the key index forming a bearish candlestick and unable to build on recent gains, a consolidation beckons over the near term.
“The immediate resistances are located at 1,722 points, followed by 1,727 points. Meanwhile, near-term supports remain pegged at 1,700 points and 1,686 points respectively,” it said.
Quintex Intel global strategist Stephen Innes said regional markets opened higher, led by gains in Japan and South Korea following a firmer finish in US technology shares last week. Semiconductor stocks also provided support, although investors remained cautious heading into a catalyst-heavy week.
He said oil prices remained elevated amid renewed US-Iran tensions around the Strait of Hormuz, while stronger-than-expected US payrolls revived expectations of another Federal Reserve rate hike ahead of this week’s inflation data.
“So the regional open is constructive, but constructive isn't the same as comfortable,” Innes said.
