KUALA LUMPUR: Gains in selected blue chips lifted the FBM KLCI at midday on Monday, even as the broader market remained under selling pressure.
At the lunch break, the FBM KLCI rose 6.51 points, or 0.38%, to 1,714.61, just below its morning high of 1,715.04.
In the broader market, decliners outpaced advancers, with 587 stocks closing lower against 368 gainers, signalling that selling pressure dominated. Turnover came to 2.02 billion shares valued at RM1.1bil.
TA Securities expects the local benchmark index to extend its decline, with bearish technical indicators pointing to continued weakness in the near term.
“Market sentiment is likely to remain cautious amid persistent uncertainty in global markets, as investors continue to monitor developments surrounding US-Iran tensions and their potential impact on energy prices,” it said.
The brokerage noted that elevated oil prices are expected to keep inflationary pressures in focus, potentially shaping expectations for the global interest rate outlook and weighing on overall risk appetite.
“Nevertheless, selective bargain hunting in blue-chip stocks may emerge at lower levels, particularly following recent weakness, which could help cushion the downside and provide some support to the broader market,” TA said.
It said immediate support for the index is at the 100% Fibonacci retracement level of 1,684, followed by the June 2026 low of 1,655 and the 76.4% retracement level of 1,610.
Resistance is seen at the 123.6% Fibonacci projection level of 1,759, followed by 1,805 and 1,842.
Meanwhile, Apex Securities said the stronger-than-expected US jobs report has modestly raised the odds of a September rate hike, with the Federal Reserve’s next move now largely dependent on incoming inflation data, particularly after Fed chair Kevin Warsh’s hawkish tone at Jackson Hole.
It said resilient labour data and a hawkish Fed have kept interest rate expectations sensitive ahead of the September Federal Open Market Committee meeting.
“The local bourse is likely to remain cautious in the near term, as persistent geopolitical uncertainties and elevated commodity prices keep investors selective, while resilient economic fundamentals and selective bargain-hunting should help cushion the downside.
“We stay neutral to cautious on the KLCI, as the recent plantation pullback appears more technical than fundamental, but persistent foreign selling could continue to limit the pace of any recovery in the broader market,” Apex said.
Technology stocks were among the top gainers on Bursa Malaysia. Malaysian Pacific Industries
jumped 52 sen to RM39.92, UMS Integration rose 15 sen to RM8.25 and Unisem gained nine sen to RM4.25.
Other gainers included Tenaga Nasional, which added 26 sen to RM13.88, PETRONAS Gas, which gained 24 sen to RM17.50, and United Plantations, which climbed 15 sen to RM8.25.
Among the decliners, Carlsberg slid 22 sen to RM12.80, Nestlé fell 18 sen to RM94.66, Heineken lost 14 sen to RM14.70 and ViTrox declined 10 sen to RM9.06.
