By Fintan Ng
KUALA LUMPUR: The technical rebound seen in Tuesday’s trade will not be sustainable as investors remain cautious ahead of the outcome of the US Federal Open Market Committee meeting to be known later Wednesday evening local time.
OSK Research Sdn Bhd analyst Shin Kao Jack said in a report that yesterday’s technical rebound did not alter the market’s bearish landscape.
He advised investors to be prepared for another round of heavy selling pressure as the near-term market view was bearish.
Meanwhile, HwangDBS Vickers Research Sdn Bhd said the KLCI “will probably swing sideways with a marginal positive bias, wanting to test its support-turned-resistance level of 1,050” as key US indices ended Tuesday’s trade broadly mixed.
It added that investors might be cautious ahead of the US Federal Open Market Committee meeting, which was widely anticipated to maintain the federal funds rate at near zero.
In morning trade, the KLCI was up 0.68% to 1,051.61 while Singapore’s Straits Times Index was 0.47% higher 2,236.52.
Tokyo’s Nikkei 225 was flat at 9,550.52 and Shanghai’s A share index lost 0.14% to 2,888.57.
Taipei’s Taiex Index was down 0.05% to 6,194.29 and Seoul’s Kospi Index gained 0.05% to 1,361.22.
At Bursa Malaysia, 225 counters were up, 37 were down and 89 others were traded unchanged. There were 149.40 million shares done at a total value of RM132.02 million.
Plantation stocks Asiatic was up 15 sen to RM5.60, Keck Seng gained 12 sen to RM3.60 and Batu Kawan dropped 10 sen to RM8.80.
Among property stocks, UEM Land was up 3 sen to RM1.46, Tebrau was 1 sen higher at 73.5 sen and KLCC Property was down 8 sen to RM3.30.
MISC foreign tranche fell 25 sen to RM8.50, Parkson was 6 sen lower at RM4.80 while TNB gained 15 sen to RM7.55 and Resorts was up 4 sen to RM2.57.
Samchem, which made its debut yesterday on Bursa Malaysia’s main board, was 2 sen higher at 92 sen.
John Master, which announced plans yesterday to sell its entire business and assets, was up 21.5 sen to 70.5 sen. Its shares were suspended last Friday at 49 sen.
Nymex crude oil in electronic trade was down 88 cents to US$68.36 per barrel.
Spot gold fell US$3.03 to US$922.79 per ounce.
The ringgit was quoted at 3.539 to the US dollar.