FBM KLCI holds on to recent gains amid return of foreign interest

KUALA LUMPUR: Investors on Bursa Malaysia are taking time to digest recent gains as Wall Street ended mixed overnight ahead of the release of quarterly results from Big Tech.

On Malaysia’s main index, blue chips took a breather below the 50-day simple moving average after four consecutive days of gains with foreign funds returning to the oversold market after a protracted selling streak.

The FBM KLCI stayed nearly flat against the previous day’s closing level – opening just 0.61 points lower at 1,520.98 to hold steady at four-week highs.

According to Rakuten Trade, it was surprised by the sudden U-turn by foreign funds, which prompted a net inflow of US$540mil into the domestic market over the last three sessions.

“If such buying continues, we may see the index to hover between the 1,520-1,530 range today and surpass the crucial 1,530 mark anytime soon,” it said in its review.

In domestic sectors, Malacca Securities Research said cybersecurity stocks are getting their turn in the limelight after the rising incidents of cyber threats.

“We remain positive on cybersecurity stocks like LGMS and Cloudpoint, as we believe market participants will realise the importance of cybersecurity as global digitalisation effort accelerates and we expect software related stocks to be less impacted by the reciprocal trade tariffs,” it said in its review.

It added that traders could focus on selected construction, O&G, technology, utility and glove stocks for the session, as well as WTEC, which is making its debut on the ACE Market today.

WTEC, a foam products manufacturer, is one of the most actively traded stocks in early trade, but is receiving a lukewarm welcome. Opening flat at 25 sen apiece, the share was down 0.5 sen (2%) in the first 15 minutes of trading with seven million shares traded.

Other shares seeing active trading action included NexG up one sen to 38 sen and Jiankun flat at three sen.

On the FBM KLCI, Nestle jumped RM1.92 to RM82.30 following its results announcement yesterday, amid suggestions the consumer giant’s prospects could be turning around.

PETRONAS Dagangan gained 12 sen to RM19.10 while Hong Leong Bank slid 14 sen to RM19.86.