KUALA LUMPUR: There is upside momentum on the domestic market following the overnight surge on Wall Street although expectations are for prices to remain range-bound in the absence of domestic catalysts and ahead of the US Federal Reserve’s next rate hike decision.
At the start of trading, the FBM KLCI was seen rising 0.6 points to 1,434.84 points as investors cheered on more evidence of cooling US inflation.
The US producer price index for March contracted 0.5% from the previous month, which analysts say shows a significant slowing in producer goods.
However, TA Securities Research noted that there continues to be worries over the economic outlook as the Fed is due to release its next interest rate decision next month.
“The local market should continue to trade sideways ahead of the weekend, with caution over the US Federal Reserve’s rate decision next month and worries over inflation and recession risks dampening market tone,” it said in a note.
“On the index, immediate overhead resistance remains at 1,450, followed by the easing 200-day moving average level at 1,457, with 1,500, and then 1,512 as stronger resistance levels. Key chart supports are from the recent low of 1,391, and last October’s low of 1,372.”
With US technology stocks rallying strongly following the release of slower US inflation data, the Bursa Malaysia Technology Index followed suit, rsiing 1% to 63.71.
MPI jumped 12 sen to RM29.42, KESM rose 10 sen to RM7.70, Frontken climbed six sen to RM3.24 and D&O gained four sen to RM4.28.
Blue chips on the FBM KLCI were more subdued with notable gainers being PETRONAS Gas rising 18 sen to RM16.98 and Genting aadding seven sen to RM4.72.
Top actives on the market included Hong Seng rising 0.5 sen to 13.5 sen, MYEG gaining three sen to 90.5 sen and CSH adding one sen to 5.5 sen. – The Star