KUALA LUMPUR: Bursa Malaysia’s barometer index closed at an intraday high and snapped a four-day losing streak yesterday, as bargain hunting emerged following recent weakness, with half of the key index components advancing.
At 5pm, the FBM KLCI gained 11.27 points to close 0.66% higher at 1,698.01 points from last Friday’s close of 1,686.74.
The benchmark index opened 0.09 points lower at 1,686.65 yesterday, fell to an intraday low of 1,682.49 before settling at the intraday high of 1,698.01.
Market breadth, however, was negative, with losers beating gainers 764 to 421. A total of 498 counters were unchanged, 1,157 untraded and 26 suspended.
Turnover narrowed to 3.18 billion units worth RM2.79bil, from 3.57 billion units valued at RM3.28bil last Friday.
A dealer said the near-term outlook for the FBM KLCI remains cautious and range-bound despite Monday’s rebound, with investors likely to remain selective amid persistent global uncertainties.
“Market sentiment could continue to be influenced by the US Federal Reserve’s (Fed) upcoming policy decision, oil prices and geopolitical developments, while foreign fund flows are expected to remain an important factor for the FBM KLCI.
“Nevertheless, the recent market weakness could provide opportunities for bargain hunting, particularly in fundamentally sound blue-chip counters,” he said.
Meanwhile, Berjaya Research Sdn Bhd head of research Kenneth Leong said the FBM KLCI could extend its rebound in the near term, supported by further bargain hunting.
He added market participants are likely to take cues from China’s retail sales and industrial production data slated for release tomorrow, which would indicate domestic demand and manufacturing activity in the region, while developments in global markets and commodity prices could continue to influence market sentiment.
“We expect the index to remain range-bound with a mild upward bias, pending stronger catalysts to drive a more sustained recovery. Technically, the local bourse has formed a bullish candlestick and could take a jab towards the 1,700 psychological level,” he told Bernama.
Leong said a successful breakthrough could lift the key index towards the immediate resistance levels at 1,714 points, followed by 1,722 points, while support levels remain at 1,680 points and 1,676 points, respectively.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said that following the recent correction, the benchmark index remains close to oversold territory, which could continue to attract selective bargain hunting.
“We also believe valuations of selected blue chips have become increasingly attractive, particularly banking stocks, where the recent decline in share prices has lifted prospective dividend yields and strengthened their appeal to longer-term investors.
“For the week, we expect market volatility to remain elevated as investors closely monitor developments in West Asia, crude oil prices and the upcoming Fed and Bank of Japan’s policy decisions,” he said.
Thong said that while these external uncertainties are likely to cap the strength of any near-term recovery, the FBM KLCI’s increasingly attractive valuations and potential bargain hunting in fundamentally sound blue chips should provide some downside support.
Among the heavyweights, Malayan Banking Bhd
added eight sen to RM10.46, Public Bank Bhd gained five sen to RM4.85, CIMB Group Holdings Bhd rose 18 sen to RM7.97, Tenaga Nasional Bhd increased four sen to RM13.64, and IHH Healthcare Bhd was 11 sen higher at RM7.76.
As for the top actives, Zetrix AI Bhd eased half a sen to 24.5 sen, Top Glove Corp Bhd rose three sen to 83 sen, while JAKS Resources Bhd and AHB Holdings Bhd both added one sen to 13.5 sen and 6.5 sen, respectively, and Ni Hsin Group Bhd inched up 1.5 sen to 29 sen.
Hong Leong Bank Bhd led the top gainers, rising 30 sen to RM23.38, while Hong Leong Industries Bhd gained 28 sen to RM17, Hengyuan Refining Co Bhd jumped 21 sen to RM3.45, IOI Corp Bhd grew 20 sen to RM4.93, and Naim Holdings Bhd firmed 18 sen to RM5.27.
Of the top losers, Malaysian Pacific Industries Bhd and Nestle (M) Bhd both fell 70 sen to RM40 and RM91.30, respectively.
Allianz Malaysia Bhd was 66 sen lower at RM21.52, UWC Bhd dropped 34 sen to RM6.26, and Fraser & Neave Holdings Bhd lost 32 sen to RM23.24. — Agencies
