Positive market undertone despite low buying interests

Rakuten Trade says the FBM KLCI maintained its consolidation to dip below the psychological 1,600 level as profit taking activities continued.

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Positive market undertone

“We are indeed surprised by the lack of buying interests on the local bourse of late but expect some bargain hunting to emerge now that the index is hovering below the 1,600 mark.

“We believe market undertone is still positive thus expect the index to trend between the 1,600-1,610 range today with interests possibly on the Banks and Telcos.”

Tight range

FBM KLCI trended in a tight range for the past few sessions as investors are reluctant to make significant move with a “wait and see” approach during the consolidation period. The benchmark index lost 6.34points or 0.395% to finish at 1,599.79. Market breadth was negative with 907 losers against 341 gainers while 451 were unchanged. Market volume was 5.57b valued at RM4.06bn.

Majority of sectors were negative with utilities (-1.3%), transportation (-0.8%), and property (-0.6%) leading the losses; while gainers were seen in plantation +0.3%), and consumer (+0.2%.

Major regional indices trended mixed. HSI gained 2.87%, to end at 18,430.39. SHCOMP dropped 0.40%, to close at 3,018.05. Nikkei 225 was up 0.23%, to finish at 38,570.76. STI rose 0.07%, to close at 3,304.00.

Wall Street was closed for trading yesterday.