FBM KLCI Holds Firm Amid Cautious Sentiment; ATECH and Sino Biopharm in Focus

The FBM KLCI closed higher despite cautious sentiment, while Rakuten Trade sees accumulation opportunities and highlights ATECH and Sino Biopharmaceutical as attractive technical trading ideas.

FBM KLCI Eyes Steady Accumulation

The FBM KLCI finished in positive territory on Monday, although it retreated from its intraday high as investors remained cautious ahead of the Johor state election this weekend. Despite the subdued market mood, Rakuten Trade believes the local equity market continues to present attractive opportunities for stock accumulation at current valuations.

The brokerage expects the benchmark index to trade within the 1,680 to 1,695 range in the near term, supported by selective buying interest even as investors monitor political developments and broader market sentiment.

On the technical front, Rakuten Trade highlighted ATECH as a stock to watch after it formed a U-shaped recovery pattern, suggesting improving momentum. The stock is approaching its immediate resistance level of RM0.72, while converging exponential moving average (EMA) lines indicate that selling pressure is easing and a bullish crossover may be developing. Resistance levels are seen at RM0.72 and RM0.775, with support at RM0.695 and RM0.65.

For the Hong Kong market, Rakuten Trade identified Sino Biopharmaceutical as a technical trading opportunity, citing an estimated upside potential of 66.3%, alongside a 2.0% dividend yield and strengthening technical indicators. The stock has resistance levels at HKD5.20 and HKD5.70, with support at HKD4.99 and HKD4.65.

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