Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 6): The main index at Bursa Malaysia slipped back to below the 1,500-level in early trade Friday on some mild profit taking on key index-linked stocks as the rally at regional markets paused.

At 9.05am, the FBM KLCI dipped 2.10 points to 1,499.39.

The early decliners included Nestle (Malaysia) Bhd, GHL Systems Bhd, MISC Bhd, Hong Leong Bank Bhd, Petronas Chemicals Group Bhd, Dialog Group Bhd, Greatech Technology Bhd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd.

Bloomberg said a global equity rally showed signs of stalling on Friday after surges for technology and other defensive sectors seen in the wake of the US election.

The dollar edged up after hitting the lowest in more than two years, it said.

Inter-Pacific Research Sdn Bhd said in its daily bulletin said the gains on Bursa Malaysia was much stronger-than-anticipated yesterday as the key index managed to shoot past the psychological 1,500 points level - much of it in tandem with the euphoric equity market conditions around the world, despite the impasse in the US elections that has yet to yield clear winners.

The research house said the renewed buying was broad-based as the lower liners and broader market shares posted hefty gains with total rising stocks some 4x more than losing stocks. However, market interest thinned slightly.

Inter-Pacific said with global equities still on high, it sees further near-term gains on Bursa Malaysia as Malaysia stocks joins the chorus of most leading equity indices to make further headway.

It said at the same time, market players will also be keeping an eye on Budget 2021 that will be unveiled later today, seen largely an extension of the government’s various stimulus measures, for further trading impetus.

“Nevertheless, we also think that bouts of profit taking activities may emerge ahead of the weekend after the past two day’s gains.

“This could slow the key index’s ascend with the 1,510 level the immediate resistance, followed by the 1,520 level. The 1,500 level is the immediate support, with the 1,490-level serving as the next support,” it said.

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