FBM KLCI steadies above 1,500 amid cautious sentiment over trade talks

KUALA LUMPUR: The FBM KLCI started Tuesday on a cautious note, with mild early movements reflecting subdued investor sentiment amid ongoing U.S.-China trade uncertainty and continued foreign outflows from the local market.

The market barometer saw tepid swings in early trade today, opening marginally higher at 1,519.71, dipping to 1,517.74, and then inching up 0.65 points to 1,520.06 as of 9.21 am.

Overnight, the S&P 500 climbed 0.09% to end the session at 6,005.88 points.

The Nasdaq gained 0.31% to 19,591.24 points, while the Dow Jones Industrial Average ended essentially unchanged at 42,761.76 points.

Among the gainers on Bursa Malaysia, PETRONAS Gas rose 14 sen to RM18.28, Carlsberg added 10 sen to RM19.56, Malaysian Pacific Industries gained eight sen to RM20.98 and 99 Speed Mart climbed five sen to RM2.15.

Nestle tumbled 72 sen to RM75.02, APM slid 43 sen to RM3, Panasonic Manufacturing lost 12 sen to RM11.80 and Tenaga declined eight sen to RM14.20.

Rakuten Trade expects the FBM KLCI to trend within the 1,515-1,525 range today.

The research house noted that, so far this year, the local bourse has recorded over RM11bil in net foreign outflows, as investors shift their attention to the more robust Hong Kong market.

“No thanks to Trump’s flip-flop tariff policy, consensus has downgraded overall earnings by corporate Malaysia, namely the banks, hence the lacklustre interest in the local equities,” Rakuten said.

Meanwhile, Inter-Pacific Research noted that the key index seems to have found support just above the psychological 1,500 level, a position it is likely to hold in the near term.

This comes as market participants remain cautious, awaiting the outcome of ongoing U.S.-China trade talks, which remain at a standstill following inconclusive overnight negotiations.

Even so, Inter-Pacific said the FBM KLCI is likely to trend higher, with a mild upside bias expected to persist in the near term, supported in part by optimism that a trade deal between the two sides could eventually be reached.

“At the same time, the selling pressure is also easing somewhat and should allow for more bargain hunting to emerge for now.

“On the upside, there are resistances at the 1,523-1,525 levels and 1,530 points respectively. The supports, meanwhile, are at 1,510 and 1,503 points respectively,” Inter-Pacific said.