KUALA LUMPUR: With Wall Street entering profit-taking mode and regional markets wobbling on concerns over China’s economic outlook, the chips are stacked against Bursa Malaysia today.
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At the opening bell, the local benchmark composite index was down 2.60 points to 1,385.73.
The US major indices slid in overnight trading as investors took money out of the recent rally, ahead of Federal Reserve chair Jerome Powell’s testimony to Congress.
The Dow Jones dropped 0.7% to 34,053, the S&P500 shed 0.5% to 4,388 and the Nasdaq slipped 0.2% to 13,667.
TA Securities Research said the local market should continue trading sideways with further lending rate cuts by China increasing worries over growth momentum in the world’s second largest economy.
“Immediate overhead index resistance remains at 1,400, with 1,420, followed by the 200-day moving average at 1,446, acting as stronger resistance levels.
“On the downside, crucial chart supports are at 1,369, then 1,350,” said the research firm in a note.
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Malacca Securities Research gave a more optimistic projection that bargain-hunting activities may sustain int the near-term given the oversold situation on the FBM KLCI.
“Nevertheless, the upside might be capped over the near term prior to the state elections that will be held in 3Q2023,” it added in its market commentary.
On the blue-chip FBM KLCI, IHH was down eight sen to RM5.92, PETRONAS Gas slid 24 sen to RM16.76 and Tenaga Nasional shed five sen to RM9.17.
Active stocks on the market included Classita was up 0.5 sen to 9.5 sen, Borneo Oil flat at 1.5 sen and SCIB unchanged at 43.5 sen.
– The Star