KUALA LUMPUR (Feb 19): The FBM KLCI hovered at its highest since mid-2022 at Monday's midday break, having see-sawed during the morning session, against the backdrop of slower-than-expected economic growth in the fourth quarter of 2023.

At the midday break, the benchmark index gained 0.07% or 1.12 points to 1,534.67. The index had earlier retreated to a low of 1,530.58.

The gainers included United Plantations Bhd, Dutch Lady Milk Industries Bhd, Petronas Gas Bhd, IOI Properties Group Bhd, TH Plantations Bhd, Ajinomoto (M) Bhd, Petronas Dagangan Bhd, Aeon Credit Service (M) Bhd and Jaya Tiasa Holdings Bhd.

The actively traded stocks Hong Seng Consolidated Bhd, Minetech Resources Bhd, TWL Holdings Bhd, MMAG Holdings Bhd and Reneuco Bhd.

The decliners included Heineken Malaysia Bhd, Allianz Malaysia Bhd, NPC Resources Bhd, Malaysian Pacific Industries Bhd, Bursa Malaysia Bhd and KESM Industries Bhd.

Kenanga Research in its weekly technical watch on Monday said that this week, the local benchmark index might see increased volatility, especially with US chipmaker Nvidia's quarterly earnings report due on Wednesday.

The research house said the global equity markets, including Malaysia, have been buoyed by the excitement around artificial intelligence, driven in part by companies like Nvidia.

“Any negative surprises in earnings or outlook from Nvidia might lead to profit-taking across the tech and semiconductor sectors, potentially impacting broader markets that have seen significant year-to-date gains.

“Moreover, as numerous companies are slated to announce their quarterly earnings before the end of February, sector or stock specific volatility is expected,” it said.

Kenanga said nonetheless, the recent increase in trading volume and foreign investment post Lunar New Year suggested that Bursa Malaysia retained a strong near-term outlook.

“Technically, the long-term outlook for the FBM KLCI remains bullish, especially with its standing above the crucial 1,509 level, corresponding to its 200-week simple moving average (SMA).

“This level is key to sustaining a positive trajectory. Despite anticipating more volatility in the coming week, the 1,509 support level is expected to hold firm, reinforcing the optimistic long-term perspective for the local benchmark index.

“All in, we anticipate continued market optimism in the week's first half, with an expected increase in volatility during the second half. Key resistance levels are set at 1,548 and 1,570, while crucial support is identified at 1,527, with additional support at 1,509, which coincides with its 200-week SMA,” it said.