“If the benchmark index is sustained above the 1,400-level for a longer period, about four to five days, its outlook will be positive in the long- term.
“The long-awaited 1,395 resistance (level) has been broken, therefore, the (index’s) outlook has turned more positive. However, there are also profit-taking possibilities because the index has gained quite a lot lately,” he told Bernama.
Additionally, Thong said the improving relationship between the US and China provided an additional boost to investors’ confidence moving forward.
The local benchmark index ended at an intra-day low despite positive sentiment from regional bourses.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 1.83 points, or 0.13%, to 1,396.23 from 1,398.06 at yesterday’s close.
The barometer index opened 3.04 points better at 1,401.10 this morning and moved to the highest point of 1,401.76 in the morning session.
The broader market was positive as gainers beat losers 518 to 378, while 400 counters were unchanged, 960 untraded and 14 others suspended.
Turnover rose to 2.93 billion units worth RM1.78 billion versus 2.82 billion units worth RM1.73 billion yesterday.
IHH Healthcare and Petronas Dagangan were the top contributors to the losses in the key index, declining 18 sen and 64 sen each to RM5.77 and RM21.76, with a combined total of 3.67 points.
However, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said he expects to see more upside in the near future as the FBM KLCI remains in an oversold position.
Among the other heavyweights, Maybank and CIMB decreased two sen each to RM8.73 and RM5.20, respectively.
Petronas Chemicals slipped three sen to RM6.13, while Public Bank improved four sen to RM3.92 and Tenaga Nasional went up seven sen to RM9.10.
Among the actives, Sarawak Consolidated shed three sen to 46.5 sen, while Classita advanced 1.5 sen to 14 sen, Hong Seng perked up one sen to 9.5 sen and TA Win earned 0.5 sen to 4.5 sen.
On the index board, the FBM Emas Index was 1.88 points firmer at 10,302.23, the FBMT 100 Index eased 0.93 of-a-point to 9,989.26, the FBM Emas Shariah Index was 18.58 points lower at 10,583.93, the FBM 70 Index improved 50.11 points to 13,604.97, and the FBM ACE Index fell 8.75 points to 5,212.52.
Sector-wise, the financial services index increased 47.88 points to 15,545.16, the industrial products and services index inched down 0.19 of-a-point to 161.07, the energy index reduced 2.7 points to 811.18, while the plantation index shed 0.36 of-a-point to 6,895.67.
The Main Market volume narrowed to 1.99 billion units valued at RM1.53 billion from 2.09 billion units valued at RM1.50 billion yesterday.
Warrants turnover expanded to 399.67 million units worth RM62.76 million against 299.16 million units worth RM47.77 million yesterday.
The ACE Market volume strengthened to 536.55 million shares valued at RM182.49 million from 422.16 million shares valued at RM179.29 million previously.
Consumer products and services counters accounted for 441.09 million shares traded on the Main Market, industrial products and services (612.31 million); construction (98.93 million); technology (209.90 million); SPAC (nil); financial services (80.43 million); property (212.72 million); plantation (26.92 million); REITs (8.67 million), closed/fund (6,900); energy (132.17 million); healthcare (69.93 million); telecommunications and media (32.10 million); transportation and logistics (25.77 million); and utilities (43.67 million).