FBM KLCI slips after early gains with eyes on OPR, Fed decisions

KUALA LUMPUR: The FBM KLCI opened firmer after the long weekend but slipped into the red in early trade as investors weighed corporate earnings against broader macroeconomic signals.
The FBM KLCI fell 3.1 points, or 0.2% to 1,572.02 at 9.17 am. The index opened up 1.74 points at 1,576.86.
Among the decliners, CIMB lost 21 sen to RM7.22, Hong Leong Industries fell 20 sen to RM13.68, Hong Leong Bank slid 18 sen to RM19.90, and PPB Group declined 16 sen to RM9.19.
Nestle rose 62 sen to RM94.94, Malaysian Pacific Industries added 40 sen to RM27.26, Kuala Lumpur Kepong gained 30 sen to RM19.98, and PETRONAS Dagangan climbed 26 sen to RM21.44.
Berjaya Research Sdn Bhd said investors are expected to turn their attention to upcoming macroeconomic data and policy signals for market direction as the latest quarterly reporting season wraps up.
Bank Negara is expected to announce its overnight policy rate (OPR) decision on Thursday, which will be closely watched.
The research house said entering September, optimism over a potential Federal Reserve rate cut is likely to dominate sentiment in the weeks ahead.
Berjaya Research noted that a dovish Federal Reserve stance could support regional equities by improving liquidity and boosting risk appetite, but persistent foreign outflows and ongoing uncertainties over global trade policies may limit near-term gains.
"In the holiday-shortened trading week ahead, we expect the local market to stay largely directionless with near-term support located at 1,560 and 1,550 points, respectively.
"Meanwhile, the near-term resistance is pegged at 1,588 points, followed by the 1,600 psychological level," Berjaya Research said.
The research house noted that market sentiment is likely to stay subdued after a weaker-than-expected earnings season, with a consolidation phase carrying a downward bias expected to dominate the near term among lower liners.
Meanwhile, Rakuten Trade expects a swift rebound, noting that the market's undertone remains strong.
"For today, we anticipate the index to hover within the 1,575-1,590 range," it said.

Sumber : thestar.com.my