FBM KLCI tumbled 0.7% on Monday as profit-taking activities were in tune with the weakness across regional markets. The market broadly declined, with lower liners ending the day in the red. Most indices ended lower with the top decliner being Technology (-1.8%), while the top gainer was Plantation (+1.7%).
Market Outlook
Despite the disappointing regional performance, we believe the FBM KLCI is poised for a rebound, as bargain hunting activities may emerge bolstered by rate cuts by the US Fed and Bank of England and the continual promising support from the recent Republican election victory.
“We expect the FBM KLCI to float above 1,600 psychological level over time. Still, the weakness in trading liquidity may cap any potential gains over the lower liners.
“We continue to favour the Plantation sector that is riding onto the uninterrupted rally in CPO prices which steadied above RM5,000/MT. Meanwhile, the Energy sector may stage further pullback in tandem with the weakness across crude oil prices,” says Apex.
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