FBM KLCI opens slightly higher but drifts lower

KUALA LUMPUR: The FBM KLCI opened slightly higher today but turned lower afterwards amid cautious mode, despite Wall Street’s strong performance overnight.

The benchmark index fell 2.86 points, or 0.18% to 1,607.31 at 9.22 am. The index opened 0.83 of a point higher at 1,611.00.

The S&P 500 and Nasdaq registered record closing highs for a fourth straight session on Thursday as technology shares extended their recent rally. The S&P 500 gained 0.23% to 5,433.74 and the Nasdaq Composite rose 0.34% to 17,667.56.

Among the gainers on Bursa Malaysia, KESM jumped 94 sen to RM8.10, Nestle rose 70 sen to RM124, Malaysian Pacific Industries gained 52 sen to RM40.48 and Cabnet added 15.5 sen to 44 sen.

PETRONAS Gas declined 20 sen to RM17.80, Press Metal fell 16 sen to RM5.82, Apollo Food lost five sen to RM6.80 and United Plantations gave up 14 sen to RM24.

Inter-Pacific Research sees little change to the near-term market direction due to the lack of convincing impetuses and this is likely to keep the key index within a rangebound trend for the time being.

The research house noted a lack of both domestic and foreign catalysts to drive further buying among key index constituents, and with valuations being relatively fair, the upside potential is also limited.

It also mentioned that selling pressure remains light, which could help keep the key index above the psychological level of 1,600 points.

“Under the prevailing environment, we continue to think that the key index will linger within the 1,600 and 1,620 levels for the time being. The is an interim support at the 1,605 level, while there is a resistance at 1,615 points,” Inter-Pacific said.

“In the broader market, conditions may stay relatively firm, premised on the continuing trading interest from retail players. However, with the long weekend ahead, the follow through buying interest may be milder and there could also be bouts of profit taking that could temper some of the upsides,” it added.