KUALA LUMPUR: The FBM KLCI opened higher on Friday, tracking overnight gains on Wall Street, but drifted into negative territory as cautious sentiment continued to weigh on the local bourse.
Overnight, Wall Street ended higher as the S&P 500 rose 0.33% to 7,744.06 points, while the Nasdaq Composite edged up 0.08% to 26,713.03 points. The Dow Jones Industrial Average outperformed, rallying 1.08% to 52,177.69 points.
As at 9.15am, the benchmark index fell 6.28 points, or 0.39%, to 1,617.42 after opening 1.13 points higher at 1,624.83.
Among the decliners, Dutch Lady
fell 28 sen to RM29, PETRONAS Gas shed 20 sen to RM17.40, United Plantations declined 20 sen to RM30.40 and Press Metal slipped 14 sen to RM7.03.
CIMB eased 10 sen to RM7.38, while Tenaga Nasional and AmBank lost eight sen and six sen to RM12.90 and RM6.36, respectively.
Technology and semiconductor stocks were among the top gainers on Bursa Malaysia, with Malaysian Pacific Industries rising 18 sen to RM40.58, ViTrox gaining 18 sen to RM10.50, UWC adding 15 sen to RM7.33 and Pentamaster climbing 12 sen to RM5.52.
EGH International Bhd, which made its debut on the ACE Market today, slipped below its initial public offering (IPO) price of 16 sen, falling two sen, or 12.5%, to 14 sen.
The stock was among the most actively traded counters, with 42.67 million shares changing hands.
“We reckon the FBM KLCI may attempt to find stability, taking cue from the improved Wall Street performance overnight following the sharp slump of U.S. Treasury yields, which improves the risk appetite for riskier assets,” Berjaya Research Sdn Bhd said.
The research house said investors will be monitoring Malaysia’s advance estimate of third-quarter 2026 GDP growth, alongside US industrial production and manufacturing output data, for further insights into domestic economic momentum and the health of the global manufacturing sector.
“In the interim, we expect the benchmark to trade within a tight range, with gains likely to be measured amid the absence of fresh leads,” it said, adding that immediate resistance levels are seen at 1,630 to 1,640 points, while support is pegged at the psychological 1,600-point level, followed by 1,580 points.
The research house said the broader market could face further profit-taking pressure as traders continue to pare their holdings amid heightened volatility.
However, Berjaya Research expects the downside to be limited as stocks approach oversold levels, potentially prompting short-term bargain hunting.
Meanwhile, Malacca Securities expects the local bourse to trade positively, tracking the overnight rebound on Wall Street.
The research house favours AWC Bhd, supported by recurring data centre contract wins, including its recent RM39.7mil subcontract from Gamuda Bhd.
It said AWC's unbilled order book of approximately RM900mil, equivalent to about two times its FY2026 revenue, underpins its "buy" recommendation with a target price of 80 sen.
Malacca Securities also favours Greatech Technology Bhd, citing its RM1.83bil order book and expansion into data centre-related automation.
It said demand from the life sciences, e-mobility and semiconductor sectors could further support the group's earnings visibility.
