Bursa Malaysia likely to trade sideways

KUALA LUMPUR: The FBM KLCI is expected to remain sideways for now, with a potential for increased trading sentiment due to positive developments on Wall Street.

“Bargain hunting activities may emerge over time as the local bourse may take a cue from the positive developments on Wall Street overnight. The lower liners may also see improved trading sentiment on the back of rebound play,” Apex Securities said.

For now, it said investors will be waiting for the Federal Reserve’s interest rate decision with a 98% probability of rates being unchanged.

Meanwhile, global manufacturing data from Malaysia, China, the UK and the US will also be in focus.

“We expect the technology sector to perform positively, taking cue from the improved sentiment on Nasdaq overnight,” Apex said.

At 9.10am, the FBM KLCI fell 0.78 of a point, or 0.05% to 1442.92. The index opened 0.97 of a point lower at 1,441.17.

Among the losers, Nestle slid RM1.20 to RM122.60, Panasonic Manufacturing fell 20 sen to RM17.70, Hap Seng lost 14 sen to RM4.77 and Hong Leong Financial Group eased gave up eight sen to RM17.16.

Riverview Rubber Estates rose 24 sen to RM3.35, PPB added eight sen to RM15.26, Central Global gained eight sen to RM3.02 and QL climbed four sen to RM5.57.

Overnight, the Dow Jones Industrial Average rose 0.38% to 33,052.87, the S&P 500 gained 0.65% to 4,193.8 and the Nasdaq Composite added 0.48%, to 12,851.24.

Inter-Pacific Research said the near-term market conditions should remain mildly positive, helped by the continuing rebound on Wall Street stocks that are also permeating Bursa Malaysia.

“This should allow the key index to fortify its stay above the 1,440 level and maintain its base-building exercise within the 1,440 and 1,450 levels for now.

“Further gains, however, could still be hard to come by due to the lack of leads and market players are awaiting for the Fed’s interest rate decision tomorrow,” it said.

The research house said locally, market players will be keeping a lookout on the upcoming corporate results to gauge their outlook for 2024.

“In the meantime, the near-term resistances remain at 1,445 points and the psychological 1,450 level.

“On the other hand, the immediate support is at 1,440 points, followed by the 200-day moving average line of 1,437 points,” Inter-Pacific said.