KUALA LUMPUR: Bursa Malaysia drifted lower in early trade on Wednesday despite gains on Wall Street, as investors remained cautious amid a lack of fresh domestic catalysts.
Overnight, the Nasdaq notched a second straight record closing high, lifted by gains in Micron Technology and other AI-related stocks, while the S&P 500 hovered just below its record high.
The Dow Jones Industrial Average fell 0.36% to 51,863.69 points, while the S&P 500 ended essentially flat at 7,764.64 and the Nasdaq gained 0.45% to 27,244.28.
Back home, the FBM KLCI eased 5.99 points, or 0.36%, to 1,677.51 at 9.15am, after opening 1.31 points lower at 1,682.19.
Technology, semiconductor and renewable-energy counters were among the top gainers on Bursa Malaysia. KESM rose 30 sen to RM4.31, Solarvest gained 13 sen to RM3.83, Samaiden added 13 sen to RM2.47 and Malaysian Pacific Industries
advanced 12 sen to RM43.32.
Among the decliners, Hong Leong Industries slid 26 sen to RM16.80, United Plantations fell 22 sen to RM33.32, while Petron Malaysia and Hengyuan lost 15 sen each to RM3.75 and RM4.15, respectively.
Berjaya Research Sdn Bhd expects the FBM KLCI to maintain a slight positive bias, supported by improving global risk appetite following the overnight Wall Street rally, easing oil prices and signs of potential progress in US-Iran negotiations.
It said the recent market correction could also spur selective bargain hunting, particularly in oversold index heavyweights.
“Nevertheless, upside is likely to remain measured amid elevated U.S. treasury yields, expectations of further Fed tightening and lingering geopolitical uncertainties,” Berjaya Research said.
Technically, the research house said the key index has formed a bullish candlestick and could extend its recent rebound.
Immediate resistance levels are at 1,687 and 1,700 points, while support levels are at 1,660 and 1,655 points.
“The broader market could remain upbeat with the FBM Small Cap Index marching higher for the third straight session.
“However, we are still cautious over the prevailing rebound amid the absence of fresh domestic leads,” it added.
Meanwhile, Malacca Securities expects the FBM KLCI to trade on a mixed note, with buying interest likely to remain selective.
The brokerage continues to favour technology and renewable energy counters, highlighting Vitrox Corp Bhd, Verdant Solar Holdings Bhd and Unisem (M) Bhd.
It said ViTrox could draw interest as the company showcases its AI-driven machine vision and inspection solutions at the SMTA Penang Expo & Tech Forum, while Verdant could benefit from improving earnings visibility, backed by its RM63mil outstanding order book.
Unisem, meanwhile, remains a semiconductor recovery play, supported by a 20% year-on-year increase in second-quarter revenue to RM570.1mil and its proposed RM742mil private placement to fund capacity expansion.
