KUALA LUMPUR: The FBM KLCI sank deeper into the red at midday on Thursday as risk sentiment remained subdued ahead of key US jobs data.
The market barometer lost 15.36 points, or 0.93%, to 1,635.81, recovering slightly from its morning low of 1,634.39.
Market breadth was negative, with 585 decliners outpacing 305 gainers, while 464 counters were unchanged. Turnover stood at 1.65 billion shares worth RM1.19bil.
“We expect the FBM KLCI to trade cautiously ahead of the US jobs data, with a more sustained recovery hinging on a pullback in US bond yields and tangible progress in US-Iran talks,” Apex Securities said.
The brokerage said risk sentiment remained constrained by rising US Treasury yields, after stronger-than-expected US private-sector hiring of 90,000 in September offset some of the relief from softer core personal consumption expenditures (PCE) inflation.
Investors are now awaiting Friday’s US non-farm payrolls data for further clues on the Federal Reserve’s next move, while stalled US-Iran negotiations continue to keep oil prices volatile.
Meanwhile, TA Securities said the local market could see further upside as technical momentum indicators improve from oversold levels, although gains may be capped by persistent geopolitical uncertainties and a lack of strong domestic catalysts.
It pegged immediate resistance for the FBM KLCI at 1,684, followed by 1,722 and 1,759.
On the downside, the brokerage said immediate support is seen at 1,610, followed by 1,564 and 1,527.
Kuala Lumpur Kepong (KLK) led the decliners, falling 76 sen to RM21.44, followed by Alliance Bank Malaysia, which shed 62 sen to RM21.
Batu Kawan and F&N fell 42 sen each to RM20.10 and RM21.32, respectively, while Hong Leong Industries declined 42 sen to RM16.04.
Among the gainers, Malaysian Pacific Industries
jumped RM1.26 to RM41.66, while Mi Technovation gained 13 sen to RM5.33. Ta Ann rose 12 sen to RM5.92, while Malayan Cement gained 11 sen to RM5.56.
Meanwhile, newly listed GB Bond closed the morning session at 22.5 sen, down 2.5 sen or 10% from its IPO price of 25 sen.
The Penang-based industrial adhesives manufacturer was among the most actively traded counters, with 58.62 million shares changing hands.
