KUALA LUMPUR: The FBM KLCI continued to gain ground, with the index nearing the psychologically important 1,400 level as foreign funds turned into a net buying position.
At lunch break, the market bellwether rose 0.15 of a point, or 0.01% to 1,398.21. The index earlier rose to its intra-morning high of 1,401.76.
Turnover was 1.66 billion shares valued at RM894.3mil. Advancing stocks beat decliners 419 to 348 while 413 counters were unchanged.
Hong Leong Investment Bank (HLIB) Research expects the FBM KLCI to gain further grounds towards 1,404-1,412-1,422 levels, supported by bottoming-up indicators.
Meanwhile, it said key supports are pegged at 1,350-1,369-1,385 zones.
“The successful downtrend line breakout and positive technical readings could spur the index higher towards 1,404-1,412-1,422 (supports: 1,350-1,369-1,385) levels,” HLIB said.
However, it said frail sentiment is likely to prevail as investors recalibrate the prevalent risk of global economic slowdown in the wake of the central banks’ tightening policy, US-China tensions, continued weakness in ringgit and foreign outflows, expectations of another lacklustre 2Q23 results season in Aug, as well as rising political risk premium ahead of the upcoming six
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Rakuten Trade reckoned recent buying activities should push through this level thus expect it to trend within the 1,400-1,410 range today.
“Meanwhile, growing demand amid tightening supplies pushed the Brent crude above US$80/barrel should maintain buying interests on oil & gas stocks today,” it added.
Consumer and semiconductor stocks are among the gainers on Bursa Malaysia. Heineken Malaysia jumped 94 sen to RM26.44, Dutch Lady added 70 sen to RM22, Malaysian Pacific Industries rose 30 sen to RM29.28 and KESM climbed 29 sen to RM7.59.
Among the decliners, PETRONAS Dagangan eased 32 sen to RM22.08, Khind lost 11 sen to RM2.65 and IHH Healthcare fell 10 sen to RM5.85.