KUALA LUMPUR: The FBM KLCI is seeing some profit-taking pressure despite improved domestic sentiment following the tabling of Budget 2027.
The key index dipped 4.36 points to 1,613.05 at 9.05am, as traders remained cautious amid the elevated crude oil prices and global bond yields.
Nevertheless, Apex Securities expects the FBM KLCI to maintain a positive bias amid continued optimism surrounding Budget 2027 and strength in selected index heavyweights provide support against a more challenging external backdrop.
It cautioned, however, that Monday's sharply negative market breadth despite the higher benchmark suggests underlying risk appetite remains weak and that the post-Budget rally is becoming increasingly selective.
"Budget 2027 should nevertheless provide a degree of domestic earnings visibility, particularly for sectors exposed to household spending and government development expenditure," it added in a note.
In its technical reading, the research firm said the index is currently trading above 1,600, which is now its key support, but remains below all the key moving averages, indicating weakness.
"The growing gap between the current price and these averages also suggests that there is still no clear sign of where the market may find support. The index remains vulnerable to further downside, with 1,600 as the key near-term support.
"A decisive break below this level could open the way towards 1,580, while any rebound is likely to face selling pressure. The outlook would improve only if the index reclaims the 1,625–1,650 range; until then, the bias remains bearish," said Apex.
On the blue-chip index, laggards included Press Metal down eight sen to RM7.14, Tenaga Nasional falling eight sen to RM12.96 and MISC shedding 11 sen to RM7.95.
Most active counters were Zetrix AI unchanged at 7.5 sen, Jaks Resources down 0.5 sen to 16.5 sen and Land & General falling 0.5 sen to 18.5 sen.