FBM KLCI opens weaker as markets turn cautious ahead of FOMC

KUALA LUMPUR: The FBM KLCI opened the week on a weaker note as the broader market turned cautious ahead of key global economic events, including the highly anticipated US FOMC meeting.
The market barometer fell 11.12 points, or 0.69%, to 1,605.40 at 9.16 am, after opening 0.49 of a point lower at 1,616.03.
Among the decliners, Malaysian Pacific Industries slid 68 sen to RM31.22, PETRONAS Dagangan fell 52 sen to RM18.88, PPB Group declined 21 sen to RM9.95 and Batu Kawan lost 20 sen to RM19.22.
Conversely, Nestle jumped RM1.60 to RM113.60, Quality Concrete climbed 16 sen to RM1.11, FCW Holdings gained nine sen to RM1.80 and Pentamaster added eight sen to RM3.78.
ACE Market debutant BMS Holdings fell four sen, or 18.18%, to 18 sen, and was the most actively traded stock with 39.95 million shares changing hands.
Berjaya Research Sdn Bhd said the FBM KLCI is likely to remain guarded and trade within its consolidation range in the near term as investors stay cautious ahead of several key global economic events.
The research house added that market sentiment is expected to be guided primarily by the upcoming US Federal Reserve interest rate decision this week, which will shape expectations on the timing and magnitude of future policy easing.
"Any shift in the Fed's tone could influence regional fund flows and drive volatility across emerging markets, including Bursa Malaysia," Berjaya Research said.
Technically, it said the key index has formed another bearish candlestick and continues to hover within the longer-term consolidation band.
"A recovery, if any, is expected to keep gains in check with the immediate resistance located at 1,630 points, followed by 1,638 points. Meanwhile, the near-term supports are pegged at the 1,600-1,595 levels," it added.
Meanwhile, Rakuten Trade said the FBM KLCI closed lower last Friday as profit-taking continued, though buying interest near the 1,610 level helped the index rebound from its intraday low.
This suggests buyers are still willing to accumulate on dips despite the softer tone.
"Given this backdrop, we anticipate the FBM KLCI to continue oscillating within the 1,610-1,630 range today," it said.

Sumber : thestar.com.my