FBM KLCI begins week on modestly positive note

KUALA LUMPUR: The FBM KLCI started the week on a slightly positive footing amid cautious sentiment and selective accumulation in blue-chip stocks.
The FBM KLCI rose 2.1 points, or 0.13% to 1,627.77. The index opened up 1.8 points at 1,627.47.
Malaysian Pacific Industres jumped 88 sen to RM31.58, Ajinomoto added 16 sen tp RM13.98, United Plantations gained 14 sen to RM26.44 and Carlsberg climbed 12 sen to RM17.26.
Among the decliners, Manulife slid 11 sen to RM2.22, Heineken fell eight sen to RM22.32, Vstecs lost eight sen to RM4.18 and Frontken declined six sen to RM4.39.
On Friday, the Nasdaq ended higher while the S&P 500 closed marginally weaker, following an early sell-off that pulled all three major Wall Street indices down by more than 1%.
The Nasdaq rose 0.13% to 22,900.59 points, while the Dow Jones Industrial Average slipped 0.65% to 47,147.48 points.
Rakuten Trade said that as traders grow increasingly disenchanted with the high valuations on Wall Street, Asia, which still offers a more reasonable value proposition, may attract a flight of funds back into the region.
"As such, we expect the index to hover within the 1,630-1,640 range today," it added.
Meanwhile, Berjaya Research Sdn Bhd said market sentiment is expected to remain guarded for the day ahead, as investors continue to assess external cues amid renewed volatility across global equity markets.
It added that the key index is likely to trade on a downward bias tone amid the prevailing uncertainties over the impact of the U.S. government's extended shutdown.
Berjaya Research noted that attention is likely to shift towards the upcoming barrage of corporate earnings releases as the market heads into the peak of the quarterly results reporting period, providing fresh insight into earnings momentum.
"Overall, traders may stay selective, with rotational interest likely to center around sectors anticipated to post stronger earnings revisions.
"On a technical viewpoint, the FBM KLCI has formed a gap-down to reverse most of last week's gains. Should the immediate support at 1,622 points fail to hold, the 1,615 points will serve as the next support.
"Meanwhile, the immediate resistance levels are located at 1,638 and 1,650 points respectively," Berjaya Research said.

Sumber : thestar.com.my