KUALA LUMPUR: The FBM KLCI reversed early losses to trade higher at midday, although broader market sentiment remained cautious with more than 700 counters in the red.
At the lunch break, the FBM KLCI rose 4.53 points, or 0.28%, to 1,620.13 after hitting an intra-morning high of 1,623.33.
Market breadth was negative, with 723 losers outpacing 251 gainers, while 443 counters were unchanged. Turnover stood at 1.657 billion shares worth RM1.016bil.
TA Securities said investors are likely to remain cautious and selective as the sustainability of the market's recovery remains uncertain amid weak medium-term technical indicators and a lack of strong domestic catalysts.
It said market sentiment would remain sensitive to external developments and broader risk appetite, with attention turning to the US midterm elections this week for their potential impact on global financial markets.
"As for stock picks this week, selected index heavyweights and lower liners such as Axiata, Binastra, Inari, Mi Technovation, Pharmaniaga
, SKP Resources, UEM Sunrise and Wasco should continue to attract investors looking for rotational plays," TA Securities said.
Meanwhile, Apex Securities said global market sentiment had turned more cautious following Friday's AI-driven selloff on Wall Street, while political uncertainty in Europe added to broader market risks.
"We expect the FBM KLCI to consolidate within the 1,600-1,630 range in the near term, with a modest upside bias from selective blue-chip buying offset by the external AI-valuation reassessment," it said.
On the domestic front, the brokerage said investors would be monitoring Bank Negara Malaysia's interest rate decision on Nov 5, the manufacturing purchasing managers' index (PMI) reading and ongoing third-quarter corporate earnings.
Positioning ahead of the FBM KLCI's phased expansion from 30 to 50 constituents, alongside political developments and speculation surrounding the 16th general election, could also keep trading selective.
Sector-wise, Apex Securities said technology stocks could face further selling pressure following Friday's global selloff in AI-related stocks, which saw the Nasdaq record its worst session since June and Intel plunge 28.58%.
Plantation stocks, meanwhile, could remain supported by higher crude palm oil (CPO) futures amid stronger crude oil prices and an improved biodiesel demand outlook, although elevated inventories could limit gains.
Among the top gainers, Mega Fortris Bhd surged 51 sen to RM2.73, followed by MISC and Petronas Dagangan, which rose 28 sen each to RM8.53 and RM19.78, respectively. Westports gained 19 sen to RM7.04.
On the losing end, Dutch Lady Milk fell 60 sen to RM28.30, while ViTrox shed 38 sen to RM10.52 and Malaysian Pacific Industries declined 36 sen to RM39.42. Batu Kawan slipped 30 sen to RM19.20.
