KUALA LUMPUR: The FBM KLCI traded lower this morning on profit taking, tracking the weak Wall Street performance overnight as investors awaited the US inflation data.
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At 9.06am, the benchmark index fell 3.11 points, or 0.21% to 1,458.92. The index opened 1.67 points lower at 1,460.36.
Among the losers on Bursa Malaysia, Heineken slid 38 sen to RM25.80, Hong Leong Bank fell 28 sen to RM19.82, Kuala Lumpur Kepong lost 12 sen to RM23.26 and PETRONAS Gas declined 12 sen to RM17.22.
Nestle surged RM1.40 to RM133.90, Ajinomoto rose 14 sen to RM16.48, UMW gained 12 sen to RM4.31 and PIE Industrial climbed seven sen to RM2.86.
Overnight, the U.S. market declined ahead of the announcement of the July consumer price index and initial jobless claims later today.
The Dow Jones Industrial Average lost 191.13 points, or 0.54%, to finish at 35,123.36. The S&P 500 shed 0.7% to 4,467.71. The Nasdaq Composite slipped 1.17% to 13,722.02.
Malacca Securities expects buying momentum to remain stable, supported by the return of net buying position from the foreign funds.
“The lower liners, however, may tread cautiously as we enter the quarterly reporting season.
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“Meanwhile, investors will be keeping a close watch on Malaysia’s unemployment rate as well as the US inflation rate today; the latter may provide additional clues over the US Federal Reserve interest rate direction, moving forward,” it added.
Inter-Pacific Research said, by and large, the FBM KLCI’s recovery has exceeded expectations and allowed it to regain most of the steep losses in 1H2023.
The still firm market undertone could still permit the key index constituents to sustain their upsides ahead of the upcoming state elections and to decouple from the vagaries of global equities.
“As such, the upsides look to continue, supported by the still positive technical indicators that also suggest more near-term upsides.
“With the 1,460 level-turned support cleared, the next hurdles are at 1,468 points and 1,473 points respectively, while the other support is at the psychological 1,450 level,” Inter-Pacific said.
“The broader market shares are still largely rangebound and is likely to remain so over the near term amid the still low follow-through buying interest. As such, their upsides could remain anaemic for the time being as retail players await the outcome of the upcoming state elections,” it added.
– The Star