KUALA LUMPUR: Bursa Malaysia regained its footing after a slow start on Monday, with the FBM KLCI returning to positive territory by the midday break.
At the lunch break, the FBM KLCI rose 5.24 points, or 0.31%, to 1,670.80, just below its intramorning high of 1,673.25.
There were 480 gainers, 531 decliners and 493 counters traded unchanged. Turnover stood at 1.976 billion shares valued at RM1.268bil.
Apex Securities expects the FBM KLCI to remain cautious and trade in consolidation mode in the near term, as persistent foreign selling, a stronger US dollar and expectations of further US monetary tightening continue to weigh on market sentiment.
The brokerage said elevated oil prices and developments in the Middle East could keep inflation expectations and global bond yields high, while movements in US Treasury yields would remain a key factor influencing fund flows into emerging markets.
“On the domestic front, the recent correction has brought valuations to more attractive levels, which could encourage bargain hunting and selective buying in blue-chip counters.
“We also expect investors to favour sectors with resilient earnings and stronger domestic or commodity-linked exposure amid the uncertain external environment,” Apex said.
Meanwhile, TA Securities said the FBM KLCI could remain under pressure and retest key support levels in the near term, amid sustained weakness in short- and medium-term momentum indicators and increasingly bearish trend signals.
“While oversold conditions may encourage selective bargain hunting and provide some near-term relief, the absence of meaningful domestic catalysts is likely to limit the strength and sustainability of any recovery,” it said.
The brokerage said a hawkish US Federal Reserve, geopolitical uncertainties and inflation concerns are expected to weigh on risk appetite.
“Against this backdrop, market sentiment is likely to remain cautious, with the FBM KLCI facing continued downside pressure in the near term and any rebound likely to be tentative and selective,” TA said.
Among the gainers, Solarvest rose 39 sen to RM3.72, YTL Power gained 36 sen to RM5.94, Samaiden added 25 sen to RM2.20 and Hong Leong Bank climbed 24 sen to RM22.78.
In contrast, Malaysian Pacific Industries
tumbled 80 sen to RM42, Nestle lost 58 sen to RM89, TIME dotCom eased 47 sen to RM5.94 and Sunway Construction declined 46 sen to RM7.42.
