FBM KLCI struggles to extend rebound

KUALA LUMPUR: After snapping a six-day losing streak yesterday, the FBM KLCI could extend its rebound although the sentiment is expected to be capped amid the ongoing volatility.

At the open, the FBM KLCI was up 0.58 points to 1,591.53, staying below the 50-day simple moving average as investors remain cautious ahead of the US PCE report.

“We expect bargain hunting to continue in the local stock market today, tracking positive sentiment from the US overnight,” said Apex Securities Research.

“However, we still advise investors to trade cautiously, as overall market sentiment remains weak.”

The research firm added that it is prudent to monitor signals of returning foreign funds, with the improved market sentiment helping to boost market liquidity.

“Economically, all eyes will be on the personal consumption expenditures (PCE) inflation data from the US, set to be released tomorrow.

“The Technology and Utilities sectors will continue to be the preferred choices for bargain hunting after Nasdaq and AI-related stocks led gains on Wall Street,” it said.

Blue chips in the lead on Thursday included Tenaga Nasional up four sen ot RM13.96, CIMB up four sen to RM6.80 and PETRONAS Dagangan climbing six sen to RM17.20.

Technology stocks were on the move, led by Pentamaster up 11 sen to RM5.04, Notion VTec gaining seven sen to RM2.19 and VSTECS rising six sen to RM4.26.

Of actives, Ingenieur was flat at 6.5 sen, MYEG dropped two sen to RM1 and YNP Property slid 5.5 sen to 55 sen.