07-07-2025
FBM KLCI slips in as consolidation continues ahead of tariffs deadline, OPR decision
KUALA LUMPUR: Moving in a sideways trajectory, the domestic stock market is due for some profit-taking after the previous week's gains, especially as the negotiation period between the US and its trading partners reaches its deadline this week.
Bursa Malaysia's benchmark FBM KLCI dropped 5.45 points to 1,544.74 at Monday's open, retracing some of the gains made from foreign inflows into the local market.
According to TA Securities, the short-term technical momentum and trend indicators on the FBM KLCI are beginning to flatten, which suggests the index could remain in a consolidation phase this week.
"Investor sentiment is likely to stay cautious due to ongoing
uncertainty surrounding potential trade negotiations with the US, especially as the July 9 deadline for President Trump's reciprocal tariff pause looms," it said in its market commentary.
However, the medium-term signals continue to reflect a bullish undertone, which indicates further upside potential for the FBM KLCI. It added that a resurgence in buying momentum will be essential to catalyse a decisive move towards higher levels.
"Immediate resistance remains at 1,564 with the next upside hurdles coming from the recent high of 1,586, followed by 1,610 ahead. Immediate index support is kept at 1,490, with stronger supports found at 1,465 followed by 1,444."
Meanwhile, Apex Securities noted the unceratainty surrounding global trade and monetary policy, with major domestic developments to direct the week's trading direction.
"Investors are advised to closely monitor the upcoming BNM Monetary Policy Decision on Wednesday, as well as the Industrial Production Index (IPI) data to be released on Friday for further indications of market direction," it said in its outlook.
Among the laggards, Gamuda dropped 17 sen to RM4.93, YTL Power fell 22 sen to RM3.90 and Sunway shed nine sen to RM4.81.
Top actives were NexG up one sen to 41 sen, NationGate sliding 15 sen to RM1.63 and TWL unchanged at 2.5 sen.
