KUALA LUMPUR: The domestic market could maintain a flattish trend as it continues on its consolidation path above the 1,500 psychological level, said Apex Securities Research.
The research firm noted an absence of fresh catalysts, which could also also see the lower liners turn to consolidation following the previous day’s recovery.
“Back home, investors will monitor economic announcements such as industrial production later today as well as retail sales and unemployment data later this week.
“We expect the consumer products and services sector to outperform ahead of the Chinese New Year festive break, while the energy and plantation sectors may also march higher taking cue from the firmer respective commodities prices,” it said in a note.
Malacca Securities Research, however, sees potential positives for local stocks following the rebound in global markets.
Wall Street rose in its recent session after US Treasury yields slipped as investors pushed back expectations of the Federal Reserve’s first rate cut to 2H24.
“On the Chinese stocks, we noticed a significant rebound after Beijing ramped up efforts to put a stall in the falling China and Hong Kong stock markets.
“With the rebound in global as well as China and Hong Kong stock markets, we believe the buying support may emerge this week on our local stock exchange,” it said in a review.
Nevertheless, the research firm predicts range-bound trading ahead of the Chinese New Year weekend break.
At the open, the benchmark FBM KLCI was down 0.47 points to 1,512.51 as investors sought for direction.
Price movement was subdued on the blue-chip index, with leading laggards including Hong Leong Bank down two sen to RM19.22, Telekom falling four sen to RM5.90 and Tenaga sliding six sen to RM10.72.
Meanwhile, top actives included fresh market entrant AGX, rising four sen to 39 sen, TWL unchanged at four sen and Reneuco down one sen to seven sen.