KUALA LUMPUR: There was some profit-taking seen on the domestic market on Monday following a strong rally over the later half of last week as investors best on signs global inflation was easing.
At 9.05am, the FBM KLCI had dropped 4.05 points to 1,464.16. There were 149 gainers to 127 decliners to indicate a slightly positive market breadth.
Trading volume was 149.06 million shares valued at RM48.95mil.
According to Kenanga Research, investors could be staying on the sidelines ahead of the coming GE15.
"While no two general elections (GE) are exactly the same, they may still feel jittery judging by the past stock market performance in the run-up to the three most recent GEs (which had witnessed considerable changes in the local political landscape).
"In particular, for the 1-week period prior to voting day, the FBMKLCI had previously logged negative returns of 4.5% in 2008 (GE12), 0.7% in 2013 (GE13) and 1.3% in 2018 (GE14)," it said in its weekly technical review.,
It added that the cautious mood could also be owing to the dearth of news flow in the week ahead with only some routine quarterly financial results announcements and the October external trade statistics on the schedule.
" In spite of the renewed buying momentum, we reckon it is still premature to say the bulls are back.
"On the chart, the key FBMKLCI’s marginal crossover above the descending trendline (that stretches back to May this year) may only be transitory in view of the simultaneous appearance of a bearish hanging man candlestick (as represented by a small real body with a long lower shadow), a probable sign that an ensuing pullback looms ahead to close the price gap that was seen last Friday.
"With that said, the benchmark index could swing with a downward bias towards our revised immediate support threshold of 1,440. Our first resistance hurdle is now placed at 1,475," said Kenanga.
In early morning trade, leading decliners included Sime Darby Plantations falling 11 sne to RM4.34, PETRONAS Chemicals sliding six sen to RM8.67 and Tenaga Nasional dropping five sen to RM8.40.
Top traded counters included Advance Synergy up one sen to 14.5 sen, Technax rising one sen to 3.5 sen and XDL down 0.5 sen to two sen.