The Malaysia stock market has moved lower in four straight sessions, slipping almost 25 points or 1.6 percent along the way.
The Kuala Lumpur Composite Index now sits just above the 1,650-point plateau and it may continue to spin its wheels again on Monday.
RHB Retail Research (RHB) said in the FBM KLCI (-0.70%) extended its losses, weighed down by selling pressure on Utilities and Transportation & Logistics heavyweights; in line with the regional markets' performance as investors stayed cautious ahead of a crucial US
jobs report and weaker economic data from Japan.
The Day Ahead
The local market sentiment remained negative, with widespread selling pressure across the board.
In the U.S., stocks also ended on a downbeat note after a weaker-than-expected labour market report; non-farm payrolls increased by just 142k, falling short of the 161k consensus estimate, leading to declines of 1-2.55% across the three major indices on Wall Street.
However, the unemployment rate edged down to 4.2%, in line with economists' expectations.
In the commodity markets, Brent oil prices fell below USD 72, driven by concerns over the soft labour market and weaker demand from China.
Meanwhile, gold prices held steady around USD 2,500, and crude palm oil prices traded near RM 3,900.
Sector Focus: Investors may continue rotating out of the technology sector in the US following softer guidance from NVIDIA and labour market weaknesses.
Additionally, the strong ringgit could further weigh on local technology stocks, leading to more selling pressure.
On the flip side, with the strong ringgit tone, they favour the Consumer, Building Material, Construction, and Property sectors, given their stable earnings visibility for the second half of 2024, supported by the NETR, NIMP, and ongoing data center projects.
Bloomberg FBMKLCI Technical Outlook
The FBM KLCI index ended lower towards the 1,653 level.
However, the technical readings on the key index were mixed with the MACD histogram forming a new negative bar but the RSI trended above 50.
The resistance is envisaged around 1,668-1,673 and the support is set at 1,633-1,638.
