KUALA LUMPUR: A bullish rally on the domestic market could be giving way to consolidation pressures as the rising cost of crude oil lends to a resurgence of inflation worries.
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The FBM KLCI has been on a five-day winning streak, receiving a shot in the arm yesterday after Opec+ announced a surprise cut to crude oil production, which sent the commodity soaring above the US$80 a barrel mark.
But at the start of Tuesday trading, Bursa Malaysia’s benchmark index was down 1.15 points to 1,432.24, suggesting that profit-taking was underway.
“Stocks should pause for consolidation, with further gains likely to encourage profit-taking given the overbought momentum and resurgent inflation worries as global oil prices trend higher on the surprise OPEC+ production cut,” said TA Securities Research in a note.
“Immediate index resistance stays at 1,450, followed by the easing 200-day moving average level at 1,459, with 1,500, and then 1,512 as stronger resistance levels.
“Key chart supports are from the recent low of 1,391, and last October’s low of 1,372.”
There was a mixed performance among the country’s leading blue chips although bank stocks, which gained in the previous sessions, were seen dipping as investors took gains.
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Maybank dropped two sen to RM8.65, CIMB slid one sne to RM5.29 and Hong Leong Bank dropped 16 sen to RM20.14.
Public Bank meanwhile remained firm with one sen advance to RM4.01 while RHB rose five sen to RM5.64.
PETRONAS Chemicals, which led the oil-inspired rally yesterday, was up two sen to RM7.23 while Press Metal added one sen to RM4.94.
Bursa Malaysia’s Energy Index however, remained largely unchanged as oil and gas stocks held their ground amid the firmer crude prices, with expectations that slashed production could propel the cost of Brent to the US$100 a barrel mark.
Bumi Armada tacked on another one sen to RM66 sen, Coastal Contract rose five sen to RM2.36 and Petron Malaysia gained two sn to RM4.51.
Among top traded counters, Fitters dropped 0.5 sen to 7.5 sen, Reach slid three sen to 4.5 sen and Pesona rose 0.5 sen to 25 sen. – The Star