[MALAYSIA] Malaysia’s benchmark index moved sideways in early Wednesday trade, continuing its trend of limited movement within a tight consolidation range observed over the past three sessions.
The FBM KLCI edged down by 0.24 points to 1,536.56, as market participants adopted a wait-and-see approach ahead of crucial policy announcements from the US Federal Reserve and Bank Negara Malaysia later this week.
Analysts note that the prevailing caution is amplified by ongoing concerns surrounding global inflation, following persistent price pressures in major economies. Malaysia’s own inflation stood at 2.4% in April—slightly above its historical average—prompting speculation over possible monetary moves by the central bank to strike a balance between price stability and economic growth.
Rakuten Trade attributed the subdued performance on Wall Street overnight to investors bracing for potential shifts in US monetary policy. The market is particularly focused on remarks expected from Fed Chair Jerome Powell following the conclusion of the policy meeting.
“Given the lethargic trading activity over recent days, we anticipate the index will likely remain within the 1,530 to 1,540 range,” the firm noted in its daily market commentary.
Across sectors, technology counters were largely subdued, mirroring losses in the Nasdaq. Nonetheless, mild bargain hunting was observed in semiconductor stocks, with names like MPI and Unisem posting modest early gains. This mirrors broader regional sentiment, where investors are selectively positioning in tech ahead of a possible US rate cut later this year.
Elsewhere, TA Securities Research highlighted investor hesitancy tied to the ongoing US-Malaysia trade discussions. The brokerage warned that reciprocal tariffs from the US could weigh on domestic growth prospects, although recent pro-business measures by the government may help cushion potential setbacks.
Looking ahead, economists are closely watching Malaysia’s upcoming trade balance data for insight into the tariffs’ impact. A shrinking surplus could prompt renewed scrutiny of Malaysia’s export-heavy sectors, especially electronics and commodities, which together represent close to 40% of total exports.
From a technical perspective, immediate resistance remains at 1,564, aligned with the 61.8% Fibonacci retracement of the rally from the June 2023 low of 1,369 to the August 2024 high of 1,684. Further resistance levels are seen at the 76.4% retracement mark of 1,610 and then at 1,644.
Support, meanwhile, is identified at 1,490 (38.2% retracement), with stronger floors at 1,444 (23.6%) and the psychological 1,400 level.
In broader market action, Sapura Energy was the most actively traded stock, gaining 0.5 sen to 4.5 sen. Reach Ten remained unchanged at 56 sen, while Velesto added 0.5 sen to 15.5 sen.
Consumer stocks saw some upward momentum, with Nestle advancing 50 sen to RM89, F&N climbing 12 sen to RM27.20, Carlsberg rising 10 sen to RM19.28, and British American Tobacco inching up eight sen to RM6.78.
WhatsApp
Instagram
Threads
