Berjaya Research flagged near-term resistance at 1,756 and 1,770 points, while brokers said broader sentiment remains constructive amid easing geopolitical tensions and improving risk appetite.
Malaysia's benchmark FBM KLCI turned lower in early Thursday trade after opening higher, as investors locked in recent gains following a rally that pushed the index close to overbought territory. The index fell 0.78 point to 1,747.39 at 9:16 a.m. local time after starting the session 2.83 points higher at 1,749.65. Consumer and utility counters led the early advancers, with Nestle (Malaysia), PETRONAS Gas, Telekom Malaysia and Theta Edge posting gains, while technology and semiconductor stocks came under pressure, including Malaysian Pacific Industries, KESM, Frontken, ViTrox and Pentamaster. The move came even as Wall Street's Dow Jones Industrial Average closed at a record overnight, helped by optimism over Iran peace negotiations. U.S. trading was mixed, with the Dow up 0.49% to 54,349.06, the S&P 500 down 0.17% to 7,723.52 and the Nasdaq Composite off 0.83% to 26,363.44, reflecting selective reactions to earnings. Nvidia and Disney advanced, while AMD and Uber declined. Berjaya Research said the FBM KLCI may be vulnerable to near-term profit-taking as its relative strength index (momentum indicator) approaches overbought territory, although it said the benchmark has formed another bullish candlestick (technical price pattern) after gapping higher. The research house placed immediate resistance at 1,756 points and 1,770 points, with support at 1,732 points and 1,720 points. Despite the early pullback, Berjaya Research and Rakuten Trade both kept a constructive view on the broader Malaysian market, citing resilient domestic economic conditions, improving corporate earnings prospects, optimism over the technology sector, easing geopolitical tensions, lower crude oil prices and stronger global risk appetite. Investors are now watching upcoming economic data and global trade developments for fresh catalysts, with Friday's U.S. employment report seen as the next major test for equities and bond yields as the Federal Reserve keeps saying inflation remains above its 2% target.