KUALA LUMPUR: Investors may be turning cautious ahead of the state elections that are to held over the coming weekend although the sentiment across global markets remain positive due to the improving economic data.
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According to Malacca Securities Research’s review, the local key index may attempt to build on last Friday’s gains while the lower liners may remain in consolidation mode ahead of the barrage of quarterly corporate earnings releases expected over the coming weeks.
TA Securities Research is also positive over the recent profit-taking on the market as it helped to neutralise the overbought technical condition and to promote a more sustainable uptrend.
It added that the resolution of the six state elections on Saturday will sway investor sentiment.
“An outcome favoring the current government will lift market sentiment and encourage more local and foreign investor commitments, while results that indicate an erosion of support for the unity government could adversely affect investor sentiment and prolong correction,” it said in a note.
At the opening bell, the benchmark FBM KLCI was down 0.31 points to 1,444.89 as investors stayed to the sidelines in light of the upcoming developments.
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Stocks dragging on the market included Tenaga Nasional down five sen to RM9.55, PETRONAS Chemicals falling seven sen to RM6.78 and IHH sliding five sen to RM5.96.
There was also declines in MST Golf falling 3.5 sen to 56 sen, Elk Desa shedding three sen to RM1.25 and Greatech dropping three sne ot RM4.60.
Meanwhile, Kuala Lumpur Kepong added 10 sen to RM23.30, MPI rose 22 sen to RM28.24, and Westports rose four sen to RM3.55.
Top actives in early traded included Classita gaining one sen to 17 sen, Advance Synergy rising one sen to 17.5 sen and Sapura Energy unchanged at 4.5 sen.
– The Star