Sunday 19 May 2024
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KUALA LUMPUR (Feb 19): Stocks on Bursa Malaysia got off to a lacklustre start on Monday morning, against the backdrop of slower-than-expected economic growth of 3% year-on-year in the fourth quarter of 2023.

At 9.05am on Monday, the FBM KLCI had added 0.04% or 0.58 point to 1,534.13.

The early gainers included Kuala Lumpur Kepong Bhd, DKSH (M) Holdings Bhd, Petronas Gas Bhd, IGB Bhd, UWC Bhd, Favelle Favco Bhd, Telekom Malaysia Bhd, Bermaz Auto Bhd and DRB-Hicom Bhd.

Inter-Pacific Securities Sdn Bhd in its daily bulletin on Monday said the near-term outlook is likely to stay mildly positive, and this could allow the key index to attempt a breakout of the 1,530 level again.

It said at the same time, market players will now look ahead to 2024’s economic prospects after a below-expectation 2023 performance, even as the downside risk to the country’s economy had risen again.

As it is, the market’s undertone has been largely supported by the nibbling by foreign funds on selected index-linked stocks of late, and with few signs of abating as yet, their continuing support should help to keep market conditions steady for the time being, according to Inter-Pacific.

“While the 1,530 level is retested, further gains may still be a challenge, due to mildly toppish market conditions that could slow its ascend.

“Therefore, the resistances remain at 1,531 and 1,535 points for now, with the supports also remaining at 1,526 and 1,520 points respectively,” it said.

Inter-Pacific said the broader market shares also look to prolong their recovery, but their upsides could also be measured, as buying interest remains largely tepid.

“As a result, their gains could also be modest until more market players return,” it said.

Meanwhile, Reuters reported that  Asian shares got off to a slow start on Monday, as fading chances for early rate cuts globally soured the mood, though investors are hoping Chinese markets return from holidays with a spring in their step.

A holiday for US markets also made for thin trading, while the latest surge in tech stocks is set to be tested by results from artificial intelligence diva Nvidia on Wednesday, Reuters said.

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