KUALA LUMPUR: Bursa Malaysia opened lower in early trade today, taking the cue from the weaker performance on Wall Street, as it took a turn and fell across the board.
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The FBM KLCI fell 3.46 points to 1,434.26 at 9.15 am. The index opened 2.33 points lower at 1,435.39.
Overnight, the Dow Jones Industrial Average slipped 90.22 points, or 0.30%, to 30,333.59. The S&P 500 fell 0.80% to 3,665.78. The Nasdaq Composite shed 0.61% to close at 10,614.84.
Apex Securities said the FBM KLCI could see profit-taking and consolidating below the resistance of 1,450 points following yesterday’s rally.
“After Thursday’s rally, the FBM KLCI breached the resistance of 1,431 with a bullish marubozu candlestick and move towards the 50- day moving average.
“Following the current trend, the index could trend up to challenge the resistance of 1,451 points, marked by its 50.0% Fibonacci Retracement level,” it added.
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Malacca Securities opined that the local bourse may trade sideways amid prevailing global and local headwinds, such as the political turmoil in the UK following the Prime Minister’s resignation and the still-hawkish Federal Reserve tone on the US interest rate direction.
Meanwhile, it said investors are waiting for the outcome of the GE15.
“Given the announcement on the GE15 polling date, investors may position themselves into politically related counters. Besides, China’s possible cutting on inbound quarantine may benefit the airline industry.
“Meanwhile, the technology sector may see mild profit taking activities following a decline in Wall Street Nasdaq,” it added.
Among the decliners on Bursa Malaysia, Nestle shed 90 sen to RM133.10, Carlsberg lost 34 sen to RM22.50, Warisan eased 25 sen to 91 sen and PETRONAS Gas fell 24 sen to RM16.76.
Hextar Technologies surged RM1.38 to RM10.48, Malaysian Pacific Industries added 34 sen to RM25.50, Hextar gained 13 sen to RM2.10 and Aeon Credit rose 12 sen to RM13.12.-The Star