KUALA LUMPUR: Bursa Malaysia, which failed to capitalise on US optimism over the Federal Reserve’s recent decision to skip a rate hike, could remain range-bound as investors fret over the US central bank’s still hawkish stance.
At the opening bell, the benchmark FBM KLCI was up 0.69 points to 1,382.42, which kept it just below the 14-day simple moving average.
The domestic market remains seated in a consolidation phase despite the bullish fervour overtaking Wall Street in recent days, as the absence of domestic catalysts and continued global uncertainty have seen foreign investors selling on the market.
TA Securities Research expects the latest indication by the Fed that there will be more rate hikes before the year is through to weigh on the local market, but said the lending rate cut by China’s central bank could cushion downside.
“Immediate overhead resistance for the index will be at 1,400, with 1,420, followed by the 200-day moving average at 1,449, acting as stronger resistance levels.
“Crucial support will be last week’s low of 1,369, with stronger chart supports at 1,350, 1,320 and 1,300,” said the research firm in a note.
There is a more optimistic trend in the local technology sector with stocks keeping gains made earlier in the week as the US Nasdaq continues to chart fresh recent highs.
Bursa Malaysia’s technology index rose 0.9% to 63.25, slightly under its weekly high.
Leading gainers included D&O up six sen to RM3.91, Frontken rising five sen to RM3.27 and Greatech gaining eight sen to RM4.46.
Top actives included TWL unchanged at three sen, Classita flat at 10 sen and SCIB up 0.5 sen to 42.5 sen.
– The Star