KUALA LUMPUR, Oct 9 — The FTSE Bursa Malaysia KLCI (FBM KLCI) ended in positive territory driven by energy-related stocks amid the stronger oil market due to tensions in the Middle East.
At 5 pm, the barometer index rose 0.38 of-a-point to 1,417.26 from last Friday’s close of 1,416.88.
The index, which opened 0.18 of-a-point higher at 1,417.06 this morning, moved between 1,415.80 and 1,420.71 during the day.
However, overall market breadth was negative with losers outpacing gainers 500 to 343 while 447 counters were unchanged, 1,020 untraded and nine others suspended.
Turnover strengthened to 2.88 billion units worth RM1.78 billion from 2.86 billion units worth RM2.09 billion last Friday.
SPI Asset Management managing partner Stephen Innes said the market’s risk-off sentiment continued to prevail amid an escalation of geopolitical risk in the Middle East.
“So the bursa traded with a risk-off bias. This is a typical global reaction that hurts most stock markets.
“Locally, there is likely some concerns over budget 2024 from foreign investors who are likely waiting for the budget to be tabled,” he told Bernama.
On a positive note, he said stock markets tend to recover quickly once tension in the Middle East subsides and this was evidenced during the afternoon session.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI closed flat due to a lack of buying interest amid the mixed performance of regional markets.
“Nonetheless, the benchmark index finished in positive territory.
“Meanwhile, key regional indices showed mixed trends as investors awaited inflation readings and trade data from China and India later this week,” he said.
Thong said sentiment remained cautious following the Middle East tensions as the ongoing conflict in the Middle East raised concerns about surging oil prices, which might threaten disruptions in the oil supply, as Brent crude oil rose by more than US$3 a barrel to US$86.95.
On the domestic front, he said sentiment is expected to continue to remain cautious and external volatility is anticipated to increase along with some selling pressure from foreign funds.
“However, it’s worth noting that the valuation of the FBM KLCI remains attractive at its current level.
“Therefore, we anticipate that the benchmark index will maintain its sideways pattern with an upside bias within the range of 1,415-1,430 for the week,” he said.
He added that from a technical standpoint, he saw immediate support at 1,415 and resistance at 1,430.
Among the heavyweight counters, Petronas Chemicals edged up seven sen to RM7.17, Maybank rose three sen to RM8.80 and Tenaga Nasional eased five sen to RM9.97 while Public Bank and CIMB were flat at RM4.03 and RM5.42.
Of the actives, KNM Group slid 2.5 sen to 14.5 sen, Sarawak Consolidated went down 1.5 sen to 48.5 sen and Systech lost two sen to 46.5 sen while Kanger International and Widad Group were flat at 11 sen and 53.5 sen. — Bernama
