KUALA LUMPUR: Bursa Malaysia remained on a sideways channel as investors were quick to cash in on the previous day’s gains.
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However, analyst expect that the positive performance on Wall Street overnight should help to bolster buying on the domestic market.
“Growing optimism the US will resolve to raise the debt ceiling ahead of the deadline should spillover to lift local sentiment, with rubber glove and oil and gas related stocks seen to attract rotational buying ahead of the weekend,” said TA Securities Research in a note.
“Immediate overhead resistance for the index remains 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.
“Immediate 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.”
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At the opening bell, the benchmark FBM KLCI was down 2.59 points to 1,425.45.
Technology counters picked up on the jump in US tech stocks, including Pentamaster up five sen to RM4.93, Greatech rising four sen to RM4.28 and Aurelius Tech climbing nine sen to RM2.42.
Following earnings announcements yesterday, counters seen losing steam included MPI down RM1 to RM26.80, Berjaya Food falling 12 sen to 70.5 sen and Malayan Flour Mills dropping 6.5 sen to 68.5 sen.
Meanwhile, among the most actively traded was DXN, making its return to the Main Market of Bursa Malaysia, falling one sen to 69 sen, while TWL was unchanged at 4.5 sen and Tanco was flat at one sen.
– The Star