FBM KLCI kicks off strong, then takes a dip

KUALA LUMPUR: The FBM KLCI opened higher on Wednesday but drifted slightly lower thereafter, due to selling activities led by selected heavyweights.

The benchmark index fell 0.64 of a point to 1,448.82 at 9.33 am. The index opened 1.45 points higher at 1,450.91.

Wall Street finished mixed on Tuesday with Dow Jones Industrial Average declining 0.22% to 36,124.56 points. The S&P 500 declined 0.06% to end the session at 4,567.18 points while tech-rich Nasdaq gained 0.31% to 14,229.91 points

Inter-Pacific Research said the current market outlook remained unchanged, and the key index is expected to remain stagnant, awaiting for more market impetuses to emerge.

However, there will still be few leads available as the year-end festivities approach that would see fewer corporate developments to keep market players interested.

“Already, market players are looking at the prospects of Malaysian corporates in 2024 and with earnings growth still anemic, other more convincing leads will be required to provide the much-needed impetuses for market players.

“Even so, valuations are still mildly attractive and could help to provide some support and maintain the key index largely on a range for the time being.

“The 1,450 level is the immediate resistance, followed by the 1,455 and 1,460 levels. On the other hand, the supports are at 1,445 and 1,440 points respectively,” Inter-Pacific said.

The research house added that the lower liners and broader market shares are also finding little traction as many retail players are starting on their year-end break.

Therefore, these stocks are also likely to remain on a drifting trend for the time being.

Malacca Securities said buying interest may build up in the technology sector on the Bursa exchange, as the technology-heavy Nasdaq rose against a weaker backdrop in the US.

“We think traders may avoid the O&G sector on the back of weak Brent crude oil price. Following the November reporting month, we opine that traders will reassess the earnings, we favour selected stocks within the REIT, construction, property, building materials and technology sectors,” it added.

The top gainer on Bursa Malaysia was Rapid, which gained 30 sen, or 1.07% to RM28.30.

Meanwhile, the top decliner was Eurospan, which lost 44 sen, or 28.39% to RM1.11.

Among the banks, Hong Leong Bank fell 26 sen to RM18.96, Maybank declined two sen to RM8.99, CIMB fell one sen to RM5.74 and AmBank added one sen to RM4.05.