Bursa Malaysia on Tuesday halted the five-day losing streak in which it had dropped more than 25 points or 1.6 percent.
The Kuala Lumpur Composite Index now sits just above the 1,660-point plateau and it may tick higher again on Wednesday.
At 9.15am, the FBMKLCI dipped -6.78 points to open at 1,653.57.
Malacca Securities (MSSB) said in a note today (Sept 11) said the FBM KLCI (+0.54%) rebounded despite a volatile intraday session, as
banking heavyweights, namely CIMB (+21.0 sen) and PBBANK (+11.0 sen) boosted the sentiment on the local front, supported by strong foreign buying interest and robust GDP outlook in Malaysia.
The Day Ahead
The Bursa Exchange rebounded, led by the FBM KLCI, following strong buying interest in banking heavyweights.
However, the small-cap index remained in negative territory for the session.
Meanwhile, U.S. stock markets ended mixed, with the Dow declining while technology stocks rebounded ahead of key inflation data, CPI and PPI—to be released tonight and tomorrow, respectively.
Investors will likely keep a close watch on the developments in the Harris-Trump presidential debate, as it could provide insights into which sectors to focus on.
In the commodity markets, Brent oil continued to fall, breaking below USD70 due to concerns over China’s slowing economy and growing recession fears.
Gold prices surged above USD 2,500 as traders anticipated a Fed rate cut next week.
Crude palm oil prices also dropped, trading below RM3,900.
Sector Focus: Despite the rebound in US technology stocks, they believed the local technology sector may face headwinds due to the strengthening ringgit.
Also, GTRONIC’s auditor resignation presents a potential affect the sentiment for the sector.
On the flip side, they favoured sectors that benefit from a stronger ringgit, such as Consumer and Financials.
The house is also positive on selected Construction and Building Materials stocks, supported by the data center segment.
Bloomberg FBMKLCI Technical Outlook
The FBM KLCI index rebounded towards the 1,660 level.
However, the technical readings on the key index were mixed with the MACD histogram forming another negative bar but the RSI trended above 50.
The resistance is envisaged around 1,675-1,680 and the support is set at 1,640-1,645.
Maybank Investment Bank (Maybank) said the KLCI snapped a six-day losing streak, thanks to gains in banking stocks.
At day’s end, the KLCI jumped 8.86pts, or 0.54%, to close at 1,660.35pts.
Leading the advancers were CIMB, PBBANK and IHH.
Market breadth, however, was negative, with losers outnumbering gainers by 501 to 479.
A total of 3.05b shares worth MYR3.79b changed hands.
Despite yesterday’s gains, the KLCI will remain choppy ahead of US inflation data, which will be released on Wednesday.
Likewise, falling oil prices will also weigh on investor sentiment.
Technically, Maybank said they expect the benchmark index to range between 1,650pts and 1,670pts today, with supports at 1,623pts and 1,596pts.
