KUALA LUMPUR: Bursa Malaysia ended lower on Friday, primarily attributed to profit-taking actions amid recent gains, as it encountered resistance in surpassing the 1,550 level.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 13.42 points to close at 1,538.02 from yesterday's close of 1,551.44.
The benchmark index, which began the session 1.72 points higher at 1,553.16, fluctuated between 1,537.11 and 1,556.22 throughout the day.
On the broader market, losers outnumbered gainers 679 to 396, while 448 counters were unchanged.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said he continues to hold a positive view on the local market, driven by decent corporate earnings and attractive valuations.
He added that the increasing daily trading volume suggests that overall sentiment is improving.
According to Thong, the FBM KLCI has been consolidating within the range of 1,542 and 1,558 following its successful breakout from the 1,540 mark on Feb 20, 2024.
Despite this consolidation, he said the index has maintained its position above all exponential moving averages (EMA), indicating an increasing potential for upward movement.
"Hence, we believe that the benchmark index is still in consolidation mode with a slight positive bias.
"As such, we anticipate the index to stage a rebound and hover within the range of 1,540 to 1,570 next week, with immediate support at 1,534, followed by 1,520.
"A notable resistance level that follows is at 1,570, and a breakthrough above this point could indicate the potential for further upward momentum," he told Business Times.
Meanwhile, Thong said key regional indices trended higher following positive economic data from China.
He noted that official data revealed that China's manufacturing Purchasing Managers' Index (PMI) for Feb matched the Reuters Poll forecast at 49.1.
"Meanwhile, the private Caixin manufacturing final PMI recorded a slightly higher figure of 50.9, up from the previous month's 50.8.
"At the same time, US Jan Personal Consumption Expenditures (PCE) Price Index came in within estimates, fueling expectations that the Federal Reserve will implement interest rate cuts by June," he said.