KUALA LUMPUR: The domestic market is expected to keep to sideways trading as investors turn cautious in light of a recession scenario following the release of US economic data.
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At the start of Thursday trading, the FBM KLCI was up 1.77 points to 1,431.32.
This comes on the back of a mixed performance on Wall Street, which had the Dow Jones rise by a marginal 0.2% while the Nasdaq dropped 1.1% and the S&P500 fell 0.2%.
According to Malacca Securities Research, the selling pressure on the US technology sector could be a result of a further dip in the 10-year Treasury yield coupled with the private payrolls report that was below expectations.
It said the selling activity may spill over to stocks on the local front, specifically on technology stocks.
Bursa Malaysia’s Technology Index was down 0.2% to 867.6, tracking the Nasdaq’s overnight fall.
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TA Securities Research meanwhile noted the situational play has been shifting from oil and gas to rubber gloves, even as the market trades sideways pending clearer market leads.
“Immediate index resistance stays at 1,450, followed by the easing 200-day moving average level at 1,458, 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,” it said in a note.
In the tech sector, MPI dropped 12 sen to RM28.88, Greatech shaved eight sen to RM4.91 and PMB Technology slid four sen to RM4.33.
Other laggards on Bursa Malaysia included F&B counters Heineken down 16 sen to RM27.16 and F&N falling 12 sen to RM25.34.
PETRONAS stocks were seen falling with PETRONAS Dagangan sliding 10 sen to RM21.52, PETRONAS Gas dropping eight sen to RM16.62 and PETRONAS Chemicals dipping four sen to RM7.21. – The Star