FBM KLCI moves lower at midday

KUALA LUMPUR: Bursa Malaysia slipped in morning trading on Monday, with the benchmark FBM KLCI down 7.3 points, or 0.5% to 1,442.93.

A total of 1.84 billion shares were traded in the morning, valued at RM1.03bil.

Market breadth turned negative as losers outpaced gainers on a ratio of 463-to-335 stocks.

Carlsberg slid 24 sen to RM19.88, Nestle fell 20 sen to RM128.80, PPB lost 14 sen to RM15.46 and British American Tobacco declined 12 sen to RM9.38.

Among the top gainers on Bursa Malaysia, were Heineken, which rose 44 sen to RM24.40, Hong Leong Financial Group, which added eight sen to RM17.86 and Mega First, which climbed eight sen to RM3.40.

Inter-Pacific Securities said market conditions remained precarious due to the uncertainties in its direction that is also in tandem with the prevailing challenging conditions among global equities.

As it is, global equities are still affected by the Federal Reserve’s intent of keeping interest rate high for longer that could also affect economic growth.

“There are also few domestic leads to encourage market players and many will still be on a wait-and-see stance.

“However, there could still be sustained bargain hunting to help the key index stay within its rangebound trend of the 1,450-1,463 levels over the near term, albeit any near-term upsides could be mild due to the few market impetuses,” it said.

Inter-Pacific does not rule out mild profit taking at the start of week before buying emerges later in the session that could help the key index remain within its base building pattern.

“Apart from the above levels, the other support and resistance levels are at 1,443 and 1,456 points respectively,” it added.

“The lower liners and broader market shares, on the other hand, could still be making further headway on the return of speculative and trading activities. The improved market following is encouraging, and this should also help to preserve these stocks’ ascend for longer.”

Meanwhile, TA Securities said the immediate support cushioning downside remains at 1,440, followed by 1,433, with subsequently 1420/1,400 acting as stronger supports.

“Immediate overhead resistance stays at 1,465, then 1,470, with the 1,490/1,500 area as next resistance, and stronger upside hurdles seen at 1,513, the 200-week moving average, and 1,552, which is the 50%FR of the 1,896 high (April 2018) to the 1,207 low (March 2020),” it said.

As for stock picks, TA Securities said defensive blue-chip construction, gaming and utility counters such as Gamuda, Genting Bhd, Genting Malaysia, Sime Darby, Tenaga and TM should attract investors looking to accumulate for longer-term upside potential.