FBM KLCI opens higher in cautious trade

KUALA LUMPUR: The FBM KLCI opened higher on Monday in cautious trade post-Budget 2024 announcement.

“With few impetuses from Budget 2024, the FBM KLCI is likely to trend within a tight range for the time being as it looks to fortify its position above the 1,440 level,” Inter-Pacific Research said.

The research house said as it is, there were few giveaways in the Budget with the emphasis on prioritising spending needs and to rein-in subsidies.

“However, the key index may also start the week on a slightly negative note as market players could opt to align their portfolios in light of the introduction of new taxes and take some profit after the last week’s gains.

“Still, the downside should be relatively benign as there is little selling pressure for now and this should allow the key index to preserve most of the gains from last week’s recovery.

“For now, the support is at the 1,440-1,443 levels, which is followed by the 200-day moving average line at 1,437 points. The resistances, meanwhile, are at the psychological 1,450 level with the ensuing hurdle set at 1,455 points,” Inter-Pacific said.

“Elsewhere, we also see conditions remaining tepid with fewer impetuses, both from local and foreign sources, to keep interest in these stocks relatively insipid. As a result, these stocks are likely to drift for the time being,” it added.

The benchmark index added 1.14 points, or 0.08% to 1,445.28 at 9.15am. The index opened 1.22 points higher at 1,445.36.

There were 181 gainers, 239 losers and 276 counters traded unchanged on the Bursa Malaysia.

Among the gainers, PETRONAS Chemicals rose 18 sen to RM7.53, Carlsberg added 12 sen to RM20.20, Heineken gained 12 sen to RM25.14 and Hong Leong Financial Group climbed eight sen to RM17.30.

Nestle slid 60 sen to RM123.30, Kuala Lumpur Kepong fell 24 sen to RM21.56, Malaysian Pacific Industries eased 14 sen to RM26.80 and British American Tobacco lost 14 sen to RM9.56.

Malacca Securities expects traders to focus on poultry stocks with the intention of removing the price ceiling for chicken and eggs.

“The other beneficiaries include the construction, solar-related, building materials and utilities sectors. Also, with the surge in crude oil prices, the energy sectors will be traded more positively,” it added.