KUALA LUMPUR: Bursa Malaysia ended the morning session lower on Thursday, weighed down by losses in technology and plantation stocks amid cautious sentiment over US interest rates and renewed volatility in global markets.
The FBM KLCI ended the morning session lower, shedding 5.60 points, or 0.34%, to 1,622.12 at the midday break on Thursday.
The benchmark index opened at 1,625.10 and moved between 1,617.14 and 1,625.61 during the morning session.
Market breadth was negative, with 764 decliners outpacing 236 gainers, while 444 counters were unchanged. Turnover stood at 1.84 billion shares worth RM1.32bil.
TA Securities said overnight losses on Wall Street could weigh on Bursa Malaysia, with broader market sentiment dampened by expectations of further interest rate hikes by the US Federal Reserve and renewed volatility in global artificial intelligence (AI) stocks.
The research house pegged immediate support for the FBM KLCI at 1,564 points, followed by stronger support at 1,527 and 1,490 points.
On the upside, immediate resistance is seen at 1,659 points, followed by the psychological level of 1,700 points and 1,759 points.
Apex Securities expects the FBM KLCI to remain range-bound as hotter-than-expected US inflation and renewed expectations of further Federal Reserve interest rate hikes weigh on market sentiment.
The brokerage said Wednesday’s improvement in market breadth and continued bargain-hunting in large-cap stocks suggested that domestic sentiment had stabilised.
However, it cautioned that gains could be limited by expectations of prolonged elevated interest rates, persistent foreign selling and ongoing geopolitical risks in the Middle East.
Against this backdrop, Apex Securities expects investors to favour selective domestic and defensive stocks.
“Plantation could maintain a positive bias as elevated energy prices improve the relative economics of biodiesel while expectations for tighter palm oil fundamentals into 2027 remain supportive of crude palm oil (CPO) prices,” it said.
It added that upstream energy stocks could attract selective buying interest as Brent crude remains above US$100 per barrel, although the sector could remain volatile amid developments in the Middle East.
Meanwhile, the transportation and logistics sector could see mixed trading, with stronger domestic activity providing support while elevated oil prices raise concerns over fuel costs.
Among the decliners, Malaysian Pacific Industries
fell RM1.82 to RM40.18, UMS Integration dropped 77 sen to RM7.56, UWC shed 51 sen to RM7.22, Kuala Lumpur Kepong declined 40 sen to RM20.90 and ViTrox lost 32 sen to RM10.32.
Gainers included Nestle, which rose 60 sen to RM90.72, Carlsberg, up 42 sen to RM12.44, Heineken, which added 38 sen to RM13.38, F&N, up 16 sen to RM20.10, and Hong Leong Financial Group, which gained 12 sen to RM17.76.
