KUALA LUMPUR: The domestic market is starting out on a weaker footing after the minutes from the US Federal Reserve’s recent meeting showed expectations of a mild recession later this year.
At the opening bell, the FBM KLCI was down 1.87 points to 1,433.87, traking the negative performance of Wall Street on the back of the weaker economic outlook.
“Despite the slower-than-expected US inflation at 5% y-o-y (versus consensus expectations of 5.2% y-o-y), we reckon that cautious sentiment may persist given the US FOMC meeting minutes were suggesting rising recession risks in the US economy.
“We believe further profit taking activities may emerge in the regional markets and our local bourse,” said Malacca Securities Research in a note.
The research firm however suggested that the technical outlook remained bullish.
“The FBM KLCI formed a hammer candle on top of EMA9 as the key index experienced some signs of buying support towards the end of the session.
“Technical indicators remained positive as the MACD Histogram extended a positive bar, while the RSI hovered above 50. The resistance is located at 1,440-1,450, while the support is pegged around 1,400-1,410,” it said.
Bursa Malaysia’s technology stocks slid following the rout on the Nasdaq overnight.
Leading tech counters included MPI falling 26 sen to RM28.62, D&O dropping seven sen to RM4.22 and Pentamaster shedding seven sen to RM4.93.
Meanwhile, AirAsia X slumped nine sen to RM1.26 as it applied once again to Bursa Securities for an extension of time to submit its regularisation plan.
Sister company Capital A fell 2.5 sen to 78.5 sen as the regularisation plan was expected to lift both companies out of Practice Note 17 status.
Most actively traded in the opening minutes of trade were Hong Seng unchanged at 13 sen, Jade Marvel up one sne ot 31 sen and Revenue down 0.5 sen to 32.5 sen. – The Star