KUALA LUMPUR: The FBM KLCI started the second half of 2023 on a positive note.
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The benchmark index added 4.98 points, or 0.36% to 1,381.66 at 9.06am. The index opened 2.71 points higher at 1,379.39.
Among the gainers, Malaysian Pacific Industries rose 38 sen to RM28.20, Kuala Lumpur Kepong gained 30 sen to RM22.26, Hextar Technologies advanced 30 sen to RM27.80 and PETRONAS Gas climbed 16 sen to RM16.86.
Pertama Digital eased 13 sen to RM2.74, SKP Resources fell 10.5 sen to 98.5 sen, New Hoong Fatt declined seven sen to RM2.72 and FGV lost six sen to RM1.39.
Malacca Securities reckoned a rebound may take shape, taking cue from bargain-hunting activities from the previous session pullback, while the calmer market sentiment on Wall Street may also lend strength to the local markets.
Still, the research house remained cautious over the impending releases of manufacturing data to gauge the strength of the economy.
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“Investors may keep watch on technology-related stocks, taking cue from the strong performance delivered by Nasdaq overnight. Focus may also shift towards the commodities-related stocks (both plantation and oil & gas related companies) amid the stronger commodity prices.
“In the meantime, the weakness in the ringgit against the US dollar may buoy trading interest within the export-related stocks,” Malacca Securities said.
Hong Leong Investment Bank Research said KLCI’s volatility is likely to persist after sliding 7.8% in 1H23, driven by multiple headwinds including ringgit weakness and persistent foreign outflows, tightening policies from global major central bankers coupled with recession fears, China’s sluggish economic growth, potential macro and earnings disappointments amid external headwinds and expectations of more subsidy rationalisations in 2H23, and escalating political tensions ahead of the state polls.
“Key supports are situated at 1,343-1,354-1,369 whilst resistances are pegged at 1,400-1,413 levels,” it said.
– The Star