KUALA LUMPUR: The FBM KLCI hovered near the previous day’s close as investors sought for direction amid a consolidating market.
According to TA Securities, a persistent negative market breadth coupled with a lack of fresh domestic catalysts suggests stocks could face near-term consolidation.
In early Wednesday trade, the FBM KLCI straddled the previous day’s close, opening just 1.84 points lower at 1,746.42 and rising to a high of 1,751.22.
“Immediate support is set at the 1,700 psychological level, with stronger support
coming from the September 2016 low (1,645), followed by the 76.4%FR
(1,610). Immediate resistance is kept at the 138.2%FP (1,804), with next
upside hurdle coming at the 150%FP (1,841), followed by tougher
resistance at the 161.8%FP (1,879),” said TA Securities in its technical reading.
Apex Research said in its note there is growing caution in global markets amid uncertainty over a potential partial US government shutdown and expectations that Kevin Warsh, President Trump’s nominee for the next Fed Chair, would avoid aggressive rate cuts.
“Meanwhile, attention will turn to key earnings this week from Amazon and Alphabet,” it added.
The research firm said local sentiment remains positive on steady buying interest and improving confidence, although risk appetite stays measured as investors monitor global monetary policy signals ahead of upcoming Purchasing Managers’ Index releases and key US macro data later in the week.
“We expect the FBM KLCI to trade range-bound within 1,730–1,760, with near-term consolidation likely as markets await fresh catalysts.”
On the blue-chip index, 99 Speed Mart Retail jumped 11 sen to RM4.01. IHH Healthcare rose 12 sen to RM9 and Nestle gained 30 sen to RM112.50.
In telcos, Axiata fell eight sne to RM2.39 and Maxis shed eight sen to RM3.82. CelcomDigi gained two sen to RM3.26.
Of actives, Pharmaniaga
rose one sen to 33.5 sen, Dnex slipped two sen to 28 sen and MLab fell 1.5 sen to three sen.
