Bursa Malaysia stays cautious ahead of Raya break

KUALA LUMPUR: Bursa Malaysia opened with heightened caution on Monday as investors chose to sit by the sidelines ahead of the Hari Raya Aidilfitri holidays, given the prevailing uncertainty on the global investment landscape.

Following the latest US jobs report, investors have been torn between the positive ramifications of a robust economy and the understanding that the Federal Reserve could delay the start of interest rate hikes this year.

The FBM KLCI opened 1.53 points higher at 1,557.78, before sliding slightly into the red.

According to Apex Securities Research, Bursa Malaysia’s outlook is expected to be capped by ongoing volatility with any recovery to be tempered by quick profit-taking activities on signs of foreign fund outflows.

“Key economic focus will be directed towards Malaysia Industrial production, retail sales and unemployment rate to be release today.

“While the energy sector fell from profit-taking activities last Friday, we remain optimistic about the sector’s positive momentum supported by higher crude oil price as geopolitical tension in the Middle East intensifies.

“Meanwhile, we expect the technology sector to mirror the gains on Nasdaq overnight,” it said in a note.

Kuala Lumpur Kepong rose 16 sen to RM22.98, PETRONAS Gas gained eight sen to RM18.10 and Sime Darby added three sen to RM2.73.

Press Metal , meanwhile, slid five sen to RM5.24 while Telekom Malaysia lost four sen to RM6.08.

Counters seeing strong trading action include UEM Edgenta , jumping eight sen at the open to RM1.02 following the announcement of a RM963.5mil deal for hospital support services in Singapore.