KUALA LUMPUR: The local market is expected to continue trading sideways as investors await a pick up in the release of corporate earnings results later this month for fresh leads.
The recent rate hikes by the US Federal Reserve and European Central Bank dampened the equities trading scene over the last two days, leading to a softer opening for Bursa Malaysia.
Ongoing jitters over the US banking scene also continue to weigh on global sentiment, as fears of a full-blown crisis in the sector threaten to derail the economic recovery.
At 9am, the benchmark FBM KLCI was down 2.38 points to 1,423.61, taking its cue from the selling on Wall Street overnight.
TA Securities Research said the local market should remain in consolidation mode with downside bias ahead of the weekend given the lack of positive catalysts on the local front, while investors look ahead to a US jobs report for the Fed’s next steps.
“Key index chart supports stays the recent low of 1,391 and last October’s low of 1,372, while immediate overhead resistance remains at 1,450, followed by the leveling 200-day moving average at 1,456, with 1,480 and 1,500 acting as stronger resistance levels,” said the research firm in its market commentary.
Leading the FBM KLCI lower, PETRONAS Chemicals fell eight sen to RM7.16 while Kuala Lumpur Kepong dropped 58 sen to RM21.38.
CelcomDigi was also down three sen to RM4.41 while Press Metal shed three sen to RM5.05 and Maybank slipped two sen to RM8.70.
Among most active counters, Revenue rose two sen to 37 sen, KNM gained one sen to six sen and Sapura Energy was unchanged at 3.5 sen. – The Star