Bursa Malaysia on Thursday ended the two-day winning streak in which it had jumped more than 55 points or 3.5 percent.

The Kuala Lumpur Composite Index now rests just above the 1,590-point plateau although it's likely to bounce higher again on Friday.

RHB Retail Research (RHB) said in a note today (Aug 9) the FKLI is keeping its bullish posture intact despite falling 9.50 pts on Thursday to close lower at 1,582.50 pts.

Yesterday, the index started off trading at 1,592.50 pts. Initially, it rose to 1,593.50 pts.

It then fell to the 1,580.50 pts day's low before the close.

Although the index printed a bearish body candlestick, it still trades above the 200-day SMA line.

The long-term moving average line is moving upwards – showing the long-term trend remains bullish.

Meanwhile, the RSI is curving downwards, suggesting the index may resort to sideways movement for the immediate sessions.

Post consolidation, expect the index to resume the upside movement, testing the 1,610 pts immediate resistance.

Breaching this immediate threshold and climbing above the 50-day SMA line should attract fresh buying pressure.

For now, they still retain the positive trading bias.

RHB advised traders to hold on the long positions initiated atthe close of 6 Aug, ie 1,565.50 pts.

To minimise the trading risks, the stop-loss threshold is set at 1,550 pts.

The nearest supportis marked at 1,570 pts, followed by 1,550 pts.

On the upside, the nearest resistance is pegged at 1,610 pts, followed by 1,630 pts.

Malacca Securities (MSSB) said the FBM KLCI (-0.09%) ended marginally lower as the index was dragged by the selling pressure with profit taking emerged within heavyweights like YTLPOWR (-14.0 sen) and PBBANK (-2.0 sen); tracking the overnight weakness in the regional markets performance as global uncertainties persisted.

The Day Ahead
After traders scooped up shares during the "Black Monday" sell-off, the broader market slipped marginally as profit-taking activities emerged.

However, MSSB believed this reaction is overdone, and it could be timely for the rebound to gain further momentum.

In the US, stock markets rebounded significantly overnight following the release of softer-than-expected unemployment claims, suggesting that the job market is resilient at this juncture.

Additionally, some corporate results posted after market hours were decent, supporting overall sentiment.

They expected buying interest to sustain and spill over to local stocks.

In the commodity markets, Brent oil strengthened amid ongoing geopolitical tensions in the Middle East, while gold prices gained momentum, rising above USD2420.

The CPO price is trading slightly above RM3700.

Sectors Focus: Given the positive rebound on Wall Street, they believed buying support should emerge on the local front within the Construction, Property, Utilities, and Technology sectors, which are beneficiaries of the data center catalyst and the AI theme.

Meanwhile, they favour the Consumer and Shipping sectors due to the stronger RM environment, and the Financial sector may be worth accumulating for its decent dividend yield.

The FBM KLCI index ended marginally lower towards 1,590 level.

The technical readings on the key index were negative with the MACD histogram forming another negative bar and the RSI recovered above the oversold level.

The resistance is envisaged around 1,605-1,6110 and the support is set at 1,570-1,575.