Flailing momentum halts FBM KLCI recovery

KUALA LUMPUR: The FBM KLCI struggled to maintain a positive trajectory on Monday as investors awaited fresh buying leads to take the stock index higher.

At the start of trading, the benchmark was a slight 1.6 points higher at 1,526.46 to suggest the recovery was running low on momentum.

However, within the first 15 minutes of trading, the index had turned negative, dropping 3.04 points to 1,522.82.

"While daily technical momentum and trend indicators on the FBM KLCI are showing signs of a rebound, the recovery appears fragile and may struggle to gain traction as bearish medium-term signals point to further consolidation ahead," said TA Securities in its market commentary.

"Investors are also likely to remain sidelined as they monitor upcoming earnings results in search of fresh buying catalysts."

The research firm said there was also lingering uncertainty on the external front over the US Federal Reserve's interest rate trajectory and ongoing trade tensions are also expected to dampen market sentiment in the near term.

However, TA Securities highlighted some stocks that could see bargain-hunting interest this week include key index heavyweights and lower liners in the rubber glove, construction, gaming, banking and energy sectors such as Hartalega, Kossan, Gamuda, Gadang, Genting, Maybank, Dialog and DNEX.

On the price table, Sunway dropped 28 sen to RM4.78, Gamuda slid six sen to RM5.27 and IHH shed four sen to RM6.53.

Other leading laggards included Sunway Construciton slumping 56 sne ot RM5.42 and MPI dropping 42 sne to RM19.50.

There was some price recovery in banks, including Maybank up four sen to RM9.56, Hong Leong Bank climbing six sen to RM19.42 and RHB gaining one sen to RM6.21.

Actives included NexG up one sen to 50.5 sen, Pharmaniaga rising three sen to 18.5 sen and Silver Ridge gaining 2.5 sen to 22.5 sen.