KUALA LUMPUR: Stocks are set to stay range-bound after a mildly positive performance on Wall Street overnight as investors anticipate the release of US economic data and the Federal Reserve’s interest rate decision on Wednesday.
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At the opening bell, Malaysia’s benchmark FBM KLCI was 0.99 points higher at 1,493.12 after ending the previous session little changed.
The market is expected to trade within a narrow trading band amid the uncertainty over whether the US central bank will raise interest rates by another 25 basis points at its upcoming Federal Open Market Committee meeting.
Helping to inform that decision would be the release of the US March consumer price index on the same day.
TA Securities Research said in a note that Bursa Malaysia stocks should remain range-bound pending fresh domestic leads and as investors await more clues on easing inflation threats to the global economy.
“On the index, immediate overhead resistance stays at 1,450, followed by the easing 200-day moving average level at 1,457, with 1,500, and then 1,512 as stronger resistance levels.
“Key chart supports are from the recent low of 1,391, and last October’s low of 1,372,” it said in its market commentary.
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Ahead of global economic developments, investors mostly held still on their positions in domestic bank stocks, as Maybank and Public Bank were unchanged while Hong Leong Bank remained untraded.
RHB eked out a one sen gain to RM5.71 while CIMB added one sen to RM5.19.
Stocks with recent corporate developments included Hong Seng rising one sen to 12.5 sen, topping Bursa’s most actively traded list with 69.63 million shares exchanging hands.
Barakah Offshore, which had the suspension on its PETRONAS operating licence lifted recently, was up 1.5 sen to two sen.
KKB Engineering received a purchase order from Samsung Engineering worth RM111.6mil, giving its share price an eight sen boost to RM1.48.
Spritzer also continued to see buying interest after announcing a one-for-two bonus issue last Friday, adding four sen to RM2.51. – The Star