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Bursa Malaysia closes mixed, late selling pushes key index further away from the 1,600 mark

KUALA LUMPUR: Bursa Malaysia ended the week mixed as the key index closed lower for the fifth consecutive day today, reversing its earlier gains due to late selling.

At 5pm today, the FBM KLCI was at 1,590.37, falling 2.32 points or 0.15 per cent, compared to Thursday's closing of 1,592.69.

The benchmark index opened higher at 1,593.41, up at 0.72 points subsequently moving between 1,590.00 and 1,598.16 throughout the trading session.

Gainers outpaced losers 600 to 585, while 477 counters were unchanged, 775 untraded and 24 suspended.

Turnover increased to 5.83 billion shares worth RM6.06 billion from Thursday's 5.03 billion units valued at RM3.42 billion.

Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the FBM KLCI reversed earlier gains and ended in negative territory due to late selling.

According to him, major regional indices finished mostly lower following broadly negative cues from Wall Street overnight where tech stocks faced pressure following a drop in Nvidia shares.

On a positive note, Thong said US Fed officials have indicated they might lower their main interest rate once or twice this year, from its highest level in over 20 years.

Back home, he said Rakuten maintained a cautiously optimistic outlook for the local market amidst its escalating volatility.

"Nonetheless, we hold a positive long-term view supported by attractive valuations, robust corporate earnings, and improving economic conditions. Hence, we expect the benchmark index to stay in consolidation mode next week until more clarity surfaces," he added.

Based on technical analysis, Thong said the FBM KLCI gapped down on Thursday, marking its ninth consecutive black candle and the benchmark index will undergo further consolidation and establish a base in the short to mid-term.

"However, a close below the 50-day Exponential Moving Average (EMA) could signal potential deeper weakness ahead. Consequently, we anticipate the index to fluctuate within the 1,589 to 1,610 range next week, with immediate support at 1,575, followed by 1,565," he said

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