KUALA LUMPUR: The FBM KLCI marched higher by midday ahead of Bank Negara’s overnight policy rate (OPR) decision this week.
In a Bloomberg survey, three economists expect a pause at 3.0% while there is a sole analyst who expects Bank Negara to hike by 25 basis points to 3.25%.
RHB Research expects the OPR to be maintained at 3% with neutral guidance at its monetary policy committee (MPC) meeting on July 6.
At midday, the FBM KLCI rose 12.03 points, or 0.87% to 1,388.71.
There were 396 gainers, 317 losers and 406 counters traded unchanged on the Bursa Malaysia. Turnover stood at 1.59 billion shares valued at RM716.9mil.
Nestle rose 60 to RM131.60, Kuala Lumpur Kepong gained 50 sen to RM22.46, Hextar Technologies added 50 sen to RM28 and Heineken Malaysia advanced 38 sen to RM26.8.
Among the losers, Hong Leong Financial Group eased 16 sen to RM17.50, YNH Property slid 11 sen to RM4.89, Ayer fell 10 sen to RM6.80 and SKP Resources declined 10 sen to 99 sen.
Inter-Pacific Research Sdn Bhd said it had been a rocky 1H2023 for the FBM KLCI as it shed nearly 8.0% year-to-date to emerge among the worst-performing equity index in the region, beset by the combination of weak corporate earnings outlook, depreciating currency and unsettled political environment that left stocks to drift lower.
“With the country’s economic and corporate fundamentals little changed, the near-term outlook is likely to remain feeble, particularly with the impending state elections likely to keep market players guarded for longer,” it said.
“The end of the window dressing activities could also see the key index retreating further as there is still a lack of fresh buying impetus to provide the much-needed lift as well as bucking the mild positivity among global equities over the past few sessions.
“With the 1,380 level breached, the supports are lowered to the 1,369-1,374 levels, which are the year lows. Further below, the support is at 1,367 points. The immediate resistance is at 1,380 points, followed by 1,385 points,” Inter-Pacific said.
The research house added that the lower liners and broader market shares also look to sustain their drifting trend amid the lack of leads to draw market players back into the market.
– The Star