FBM KLCI sees continues downward bias

KUALA LUMPUR: After ending the session nearly flat yesterday, the FBM KLCI is poised to continue its consolidation with a downward bias ahead of the Nuzul Al-Quran holiday, said Apex Securities Research.

The key index opened for mid-week trading 1.87 points lower at 1,536.51

Regional markets have been jittery this week as the highly anticipated US personal consumption expenditure price index is scheduled to be released on Friday, giving investors fresh insight into whether inflation levels are low enough to affirm an interest rate cut in June.

Overnight, Wall street indices continues to back away from record highs as investors took profit ahead of the inflation figures and updates from the Fed.

The Nasdaq fell the most at 0.42% to 16,315 while the S&P500 slid 0.3% to 5,203 and the Dow Jones slipped 0.1% to 39,282.

Meanwhile, Apex Securities said the lower liners on Bursa Malaysia may still continue their positive trend as they capitalise on the positive market sentiment alongside improved trading liquidity.

“We expect the healthcare sector to remain bullish, riding onto the improved outlook from glove players, coupled with expansions of medical services and products players.

“Also, the construction sector that is charting towards the highest level since mid-2019 is expected to remain upbeat on the acceleration of mega infrastructure projects,” it added in its market review.

In early trade, telcos were leading losses with Telekom Malaysia dropping five sen to RM5.98, CelcomDigi sliding three sen to RM4.25 and Axiata falling tewo sen to RM2.76.

In plantations, Sime Darby Plantation shed five sen to RM4.34, Kuala Lumpur Kepong dropped four sen to RM22.30 and IOI lost tow sen to RM3.99.

High-grade calcium carbonate powder producer Zantat made its debut on the ACE Market of Bursa Malaysia to a strong a reception.

At the open, the share was traded at 40 sen, a 15 sen or 60% jump over its initial public offering price of 25 sen a share.

Other actively traded counters included CFM up one sen to 16 sen and MMAG rising 0.5 sne to 17.5 sen.

At the time of writing, the share was trading at 38 sen, on the back of 41.95 million units changing hands.