KUALA LUMPUR: Bursa Malaysia ended the day lower today due to profit-taking activities in utilities, energy and tech stocks.
At 5pm, the FTSE Bursa Malaysia KLCI (KLCI) fell 5.93 points or 0.36 per cent to 1,642.77 from yesterday's close of 1,648.70.
The benchmark index opened 0.86 points higher at 1,649.56, peaked at 1,660.29 mid-morning, and then fell to a low of 1,637.45 in the afternoon session.
On the broader market, losers outnumbered gainers 857 to 357, with 433 counters unchanged.
Turnover grew to 4.19 billion units valued at RM4.55 billion from 3.89 billion units worth RM4.30 billion on Monday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng viewed today's profit-taking activities as an opportunity to accumulate stocks at lower levels, particularly blue-chip stocks.
He considered it a healthy correction that allows the market to digest the recent rally, providing a stronger base for a more sustainable uptrend.
"The near-term outlook for the benchmark index remains positive, with a likely test of the next resistance level around 1,660, supported by strong technical indicators and the 20-day and 50-day moving averages.
"In the medium term, the outlook continues to be positive as the benchmark index remains above the 200-day moving average.
"As such, we maintain our weekly FBM KLCI target between 1,630-1,660," he told Business Times.
Thong said in Asia, profit-taking was observed in certain bourses, however, most regional markets continued their upward trajectory.
This was supported by a consistent influx of foreign buying amid the strengthening of Asian currencies against the US dollar.
He noted that recent economic readings in July showed improvement in Chinese consumer spending and inflation, signalling potential growth opportunities despite ongoing concerns about the pace of economic expansion.