KUALA LUMPUR: The FBM KLCI clawed back from early losses to trade slightly higher at midday, although broader market sentiment remained cautious as losers outpaced gainers.
The FBM KLCI rose 1.29 points, or 0.08%, to 1,677.72 at midday, reversing earlier losses after opening lower at 1,674.45 and falling to a low of 1,671.48.
Market breadth was negative, with 588 losers outpacing 374 gainers, while 490 counters were unchanged. Turnover stood at 1.834 billion shares worth RM1.169bil.
Apex Securities expects the FBM KLCI to remain cautious and range-bound in the near term, as weaker Wall Street performance and elevated US Treasury yields weigh on regional sentiment.
It said rising Treasury yields and expectations of further US Federal Reserve rate hikes could pressure equity valuations and limit near-term upside.
The brokerage said the rebound in oil prices could keep inflation and interest-rate concerns in focus, although progress in US-Iran talks could help ease geopolitical risks.
Investors will also be watching the upcoming Trump-Xi meeting for developments on trade, AI and critical minerals, it added.
“Domestically, Budget 2027 will remain in focus, particularly on cost-of-living measures and targeted subsidies.
“Against this backdrop, selective bargain hunting may continue, although a sustained market recovery will likely require clearer external catalysts and improved global risk sentiment,” Apex said.
The brokerage noted that utilities could remain in focus amid a cautious market environment, supported by resilient electricity demand, ongoing grid investment and relatively defensive earnings.
“Banking stocks may also attract interest, underpinned by healthy loan growth and resilient asset quality, although margin pressure could persist amid the evolving interest-rate outlook.”
Separately, TA Securities expects the FBM KLCI to remain range-bound as investors await clearer policy signals from ongoing US-China talks, while a lack of meaningful domestic catalysts could keep market direction subdued.
It pegged immediate resistance at 1,722, followed by 1,759 and 1,805, while support is seen at 1,655, followed by 1,610 and 1,564.
Among the top gainers, Nestle surged RM2.14 to RM91.64, MISC gained 21 sen to RM7.98, while Ajinomoto and UMS Integration added 20 sen each to RM19.46 and RM8.60, respectively.
Technology and semiconductor stocks dominated the losers’ list, with Malaysian Pacific Industries
falling 96 sen to RM43.62, Unisem shedding 16 sen to RM4.58, MI Technovation easing 20 sen to RM5.93 and Pentamaster losing 12 sen to RM5.29.
