FBM KLCI drifts sideways amid heightened uncertainty
KUALA LUMPUR: The lack of movement in Malaysia's benchmark stock index at Tuesday's open showed investor indecision as the corporate earnings period entered its final stretch.
Opening just 0.94 points higher at 1,535.24, the FBM KLCI has taken on a sideways direction due to an absence of leads, especially as Wall Street markets were closed overnight for the US Memorial Day holiday.
However, there is a downward bias on the market amid the ongoing consolidation. Investors are expected to continue selling down Malaysian equities given the weak sentiment and disappointing earnings announced during this first-quarter results period.
Rakuten Trade said the FBM KLCI closed marginally weaker yesterday as it suspects foreign selling may still be prevalent.
"These short term trades by foreign funds would certainly
lengthen the consolidation of the benchmark index," it said in its review.
TA Securities Research noted that investors are uncertain over how to react to US President Donald Trump's erratic deicsion to impose a 50% tariff hike on EU imports, and the subsequent delay of the imposition to early July.
"Most investors are likely to reduce commitments as they await the final leg of earnings updates from local corporates this week and pending more details on the US trade deals with key trading nations.
"Immediate resistance stays at the recent high of 1,586, with next major resistance seen at 1,610 followed by 1,644. Immediate support remains at 1,526, with 1,490 and 1,444 acting as stronger chart supports," said the broker in its market commentary.
Following its earnings announcement yesterday, Maybank slipped four sen to RM9.88. MBMR, which also posted earnings, fell four sen to RM5.64.
Other laggards included Gas Malaysia shedding seven sen to RM4.08 and Nestle dropping 28 sen to RM79.32.
Leading actives were NexG up one sen to 37.5 sen, OCR flat at 3.5 sen and Velesto unchanged at 17 sen.
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