FBM KLCI slips after early gains as investors remain cautious

KUALA LUMPUR: The FBM KLCI opens marginally higher but turns softer soon after, as overnight cues from Wall Street offer little follow-through.

Overnight, the Dow Jones Industrial Average rose 0.39% to 47,474.46, the S&P 500 gained 0.25% to 6,829.37 and the Nasdaq Composite gained 0.59% to 23,413.67.

The FBM KLCI slips 1.13 points, or 0.07%, to 1,629.47 at 9.19 am. It had opened 0.86 of a point higher at 1,631.46.

Among the gainers, Allianz rises 54 sen to RM20.44, Tenaga Nasional advances 28 sen to RM13.02, PETRONAS Gas climbs 14 sen to RM17.84, while Hong Leong Bank adds 12 sen to RM21.26.

On the downside, Nestlé slips RM2.40 to RM117.80, PETRONAS Dagangan falls 40 sen to RM20.26, F&N declines 36 sen to RM36, while Press Metal gives up 13 sen to RM6.72.

Berjaya Research Sdn Bhd said the near-term outlook for the FBM KLCI remains cautious, as lingering global uncertainties and uneven corporate earnings continue to temper risk appetite.

“Market direction may remain choppy in the sessions ahead, with investors expected to adopt a wait-and-see stance ahead of key economic data releases and policy signals,” it said.

The research house noted that the absence of fresh domestic leads could also temper any near-term upsides.

“Technically, the key index has formed another bullish candlestick, suggesting a build up in buying momentum, but the longer-term trend continues to exhibit a rangebound pattern.

“Further gains could likely be capped at the near-term resistance at 1,638 points, followed by 1,650 points. Meanwhile, the immediate supports are pegged at the 1,612-1,600 levels,” Berjaya Research said.

Meanwhile, Rakuten Trade believes the market undertone remains steady and expects the index to trend within the 1,630–1,640 range today. The ringgit also stays firm at 4.13 against the US dollar.