KUALA LUMPUR: The local market opened slightly lower at the start of trading despite confirmation from the US Federal Reserve that it would skip the interest rate hike in June.
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While global markets welcomed the news, the central bank projected that there could be two more rate increases before the end of year, putting pressure on investor sentiment.
At 9am, Bursa Malaysia’s benchmark FBM KLCI was down 2.46 points to 1,382.96.
TA Securities Research said in its review that the local market should extend the rebound from the current oversold levels, following confirmation of the Fed’s decision to pause the interest rate hike this month.
“Immediate overhead resistance for the index will be at 1,400, with 1,420, followed by the 200-day moving average at 1,449, acting as stronger resistance levels.
“Crucial support will be last week’s low of 1,369, with stronger chart supports at 1,350, 1,320 and 1,300,” it said in a note.
Malacca Securities Research however expects selling pressure on the interest rate sensitive sectors such as the technology sector.
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“Investors may focus on sectors such as consumer, tourism, and REITs in view of more stimulus measures on the China front.
“On the other hand, the technology sector may see some pullback on the back of profit-taking activities,” it added in a note.
In early, trade blue chips leading the market lower included Tenaga Nasional falling nine sen to RM9.11, PETRONAS Chemicals dropping eight sen to RM6.32 and Press Metal shaving five sen to RM4.68.
Top actives on Bursa Malaysia were Heineken Malaysia up 32 sen to RM27.28, APB surging 21 sen to RM3.14 and Kuala Lumpur Kepong rising 16 sen to RM21.76.
– The Star