KUALA LUMPUR: The FBM KLCI started on a softer note on Thursday, despite gains on Wall Street overnight.
The market bellwether fell 1.08 points, or 0.08% to 1,414.76 at 9.11am. It opened 2.4 points lower at 1,413.44.
Inter-Pacific Research said Malaysian equity market conditions still appear morbid, unable to find traction after the recent spate of selling that has sent the key index to oversold conditions.
It said the selling also left the key index with no signs of recovery as yet and the downside bias still looms large for the time being, particularly as foreign funds were seen reducing their shareholding of late after they were the net buyers in 3Q2023.
“Nevertheless, the selling spree looks to be abating and this could help to slow the downtrend as the key index attempts to find some solace after its extended downtrend. This may even allow the key index to mount an overdue recovery as the key index takes cue from the rebound on Wall Street overnight.
“However, any recovery could be mild for now due to the lack of buying interest and the key index may only climb back to the 1,420 level.
“Further ahead, the resistances are at the 1,424-1,428 levels, while the supports are at the 1,410-1,412 levels, followed by the 1,407 level,” it added.
Overnight, the U.S. stock market rose to snap a 3-day losing streak as bond yields came off its highest since 2007 and private payrolls fell below expectation.
The The Dow Jones Industrial Average gained 127.17 points, or 0.39%, to close at 33,129.55. The S&P 500 added 0.81% and closed at
4,263.75 while he Nasdaq Composite gained 1.35% at 13,236.01.
Among the losers, Nestle slid 20 sen to RM127.30, Kuala Lumpur Kepong fell 12 sen to RM21.36, Chin Hin declined eight sen to RM3.90 and Paragon eased 11 sen to RM2.59.