The benchmark index on Bursa Malaysia ended the morning trading session on a slightly weaker note, as emerging profit-taking in selected heavyweights offset earlier gains, dealers said.
At lunch break, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 1.0 point to 1,517.16, compared to Wednesday’s close of 1,518.16.
The key index opened 1.38 points easier at 1,516.78, subsequently moving between 1,516.55 and 1,522.52 throughout the session.
On the broader market, losers led gainers 476 to 264, while 377 counters were unchanged, 1,181 untraded and six others suspended.
Turnover stood at 1.38 billion units worth RM955.39 million.
In a note today, Rakuten Trade said it expects the banking and plantation stocks to shine in the ongoing earnings season.
As such, we expect buying interest to remain in these sectors. For today, we anticipate the index to trend within the 1,510-1,525 range,” it said.
Meanwhile, Bursa heavyweights Maybank and Public Bank were flat at RM8.97 and RM4.65, respectively, while Petronas Chemicals, IHH Healthcare, and CIMB added 3.0 sen each to RM8.75, RM6.53, and RM5.48, respectively.
Of the actives, ACE Market debutant AGMO Holdings jumped 49 sen to 75 sen, Cnergenz advanced 19 sen to 91.5 sen and Hartalega rose 2.0 sen to RM1.76, while Pegasus Heights eased half-a-sen to 1.0 sen.
On the index board, the FBM Emas Index was 6.50 points lower at 10,737.34, the FBMT 100 Index shed 5.66 points to 10,486.49, the FBM Emas Shariah Index declined 18.80 points to 10,881.44, the FBM 70 slipped 19.3 points to 12,764.62 and the FBM ACE reduced 11.08 points to 4,938.18.
Sector-wise, the Financial Services Index gained 36.75 points to 16,825.53 and the Energy Index went up 4.03 points to 663.63, while the Industrial Products and Services Index eased 0.59 of-a-point to 182.98 and the Plantation Index declined 37.03 points to 7,257.69.
RHB Research cited among the top counters were:
COMEX Gold: Negative Momentum Accelerates
Trailing-stop mark triggered; initiate short positions. The COMEX Gold continued to experience selling pressure for the third consecutive session yesterday, falling USD13 to close weaker at USD1,776.70 – breaching the previous USD1,787 support to register a 2-week low. The commodity started off the session at USD1,790.80. It did jump to test the USD1,796.60 intraday high, but retraced to the USD1,773.90 session low before the close. Apart from charting a “lower low”, the latest session also saw the COMEX Gold dip below the 20-day SMA line. On the back of this negative momentum, the commodity may correct towards USD1,770, followed by the USD1,750 level. For now, USD1,800 will become the latest psychological resistance. Since the COMEX Gold has breached the trailing stop, we now shift to a bearish bias.
E-Mini Dow: Mild Selling Pressure At Top
Maintain long positions. After rallying for five consecutive sessions, the E-Mini Dow experienced its first bearish session in a while, pulling back 155 pts yesterday to close at 33,963 pts. The index began the session at 34,127 pts. After trading in-between 34,177 pts and 33,804 pts, it closed lower than the opening at 33,963 pts. Although the E-Mini Dow charted a bearish candlestick, it managed to print a “higher low”, showing that the bulls still have a technical advantage. In the event the selling pressure increases, the index will retreat towards 33,485 pts, followed by 33,250 pts. While observing that the RSI is in overbought territory now, the E-Mini Dow is prone towards undergoing consolidation and pulling back lower. As long as the index stays above the stop-loss point, we consider such a retracement as a healthy correction and hold on to our positive bias.
WTI Crude : The Selling Pressure Is Easing
Maintain short positions. The WTI Crude attempted to build an interim base as selling pressure tapered yesterday. The commodity started off the session at USD87.10. It then bounced between USD89.16 and USD85.88 before closing in USD88.11 – recouping USD1.58 from the previous session. While we have observed the WTI Crude experiencing strong selling pressure for the last three sessions, yesterday’s negative momentum failed to follow through. If the commodity stages a technical rebound, it may test the USD92 immediate resistance. On the downside, in the event selling pressure increases again, the WTI Crude may retrace towards the oversold regions of USD85 and USD81.90. For now, as the commodity has yet to chart a “higher high” pattern, the bears are apparently still in control. As such, we keep to our bearish bias.
