KUALA LUMPUR: Following the previous session’s rebound, the domestic market should see profit-taking on the back of Wall Street’s weak overnight performance and concerns over external developments.
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At 9am, the benchmark FBM KLCI was down 1.49 points to 1,422.01.
According to TA Securities Research, stocks should stay range bound on weak follow-through buying and caution over China’s softening economic growth momentum and US government debt limit talks.
“Immediate index support stays at the 1,400 psychological level, while key chart supports remain the recent low of 1,391 and last October’s low of 1,372.
“Immediate overhead resistance is at 1,450, followed by the leveling 200-day moving average at 1,456, with 1,480 and 1,500 acting as stronger resistance levels,” it said in a market commentary.
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Overnight, Wall Street turned volatile on concerns policymakers would not be able to come to a deal to raise the debt ceiling, which US Secretary of the Treasury Jenet Yellen has warned could result in the country defaulting as early as June 1.
In early morning trade, early movers on Bursa Malaysia included AirAsia X rising seven sen to RM1.76 and MAHB gaining nine sen to RM7.39.
Hume Industries rose 30 sen to RM1.26 after it revealed its third-quarter net profit surged over 14 times to RM27.01mil.
Meanwhile, Tomei dropped three sen to RM1.29, Gamuda shed four sen to RM4.04 and Yinson fell three sen to RM2.55.
Among top actives, Classita rose 0.5 sen to 15.5 sen, Vinvest added 0.5 sen to nine sen and YTL gained one sen to 67.5 sen. – The Star