Market Undertone Stays Cautious

On the home front, the FBM KLCI weakened marginally as market undertone remained cautious due to a lack of buying catalysts.

Market Undertone Stays Cautious

FBM KLCI ended marginally lower last Friday. The benchmark index lost 0.11% or 1.62 points to end at 1,418.44 with losers led by PMETAL, TENAGA and PPB.

Market breadth was negative with 425 losers against 388 gainers. Total volume stood at 2.05bn shares valued at RM1.06bn.

Key regional markets closed mixed on Friday. The Nikkei 225 and STI added 0.54% and 0.25% to end at 26,778.47 and 3,098.47 respectively. HSI and SHCOMP slipped 2.19% and 1.64% to end at 20,297.72 and 3,228.06
respectively.

Wall Street closed higher on Friday as gains in the Financials, Healthcare and Consumer Services sectors led shares higher.

The DJIA surged 2.15% to end at 31,288.26. S&P500 and Nasdaq gained 1.92% and 1.79% to end at 3,863.16 and 11,452.42 respectively.

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Lack of buying catalysts

Wall Street rallied on the back of better earnings from the banks and fears of aggressive rate hike by the Federal Reserves subsided. The DJI Average jumped
by almost 660 points while the Nasdaq gained 201 points as the US 10-year yield eased slightly to 2.93%.

On the home front, the FBM KLCI weakened marginally as market undertone remained cautious due to lack of buying catalysts.

"Therefore, we reckon the index to stay stuck within a tight trading range of between 1,415-1,425 today.

"Meanwhile, crude palm oil price performance was rather subdued at RM3,800/tonne due to lower exports while the Brent crude rose to US$101.20/barrel on lower output from the US," says Rakuten Trade.