THE FBM KLCI (-1.3%) pared most of its previous session gains as profit taking looms with more than two third of the key index components finished lower. 

“The lower liners extended their slide, while the Real Estate Investment Trust sector (+0.2%) emerged as the sole outperformer,” said APEX Securities (APEX).

Towards the global market, the Wall Street ended mixed as the Dow climbed +0.6% as weekly jobs claims fell, easing recessionary concerns, while the S&P 500 closed flat as earlier gains were weighed down by weakness in Nvidia (-6.4%). 

European stock markets advanced, while Asia stock markets finished mostly in red. 

Expectedly, the recent key index rally took a breather as investors took the opportunity to book in recent gains.

The weakness was stoked by renewed volatility on Wall Street overnight following the weaker-than-expected sales guidance from Nvidia. 

“Meanwhile, we reckon the lower liners may languish in the red as selling activities appears to be unabated. Still, we reckon that the recent market correction presents a good opportunity for investors to accumulate onto fundamentally sound companies for longer term investment horizon,” said APEX. 

Economic wise, investors will be keeping a close tab onto US Chicago PMI and Michigan Consumer Sentiment data later tonight.

Amid the renewed volatility, APEX expects the real estate investment trust sector which is touted to be defensive in nature to remain resilient. 

“We also think that the technology sector which has slumped for the past five straight sessions could be ripe for bottom fishing,” said APEX.

The FBM KLCI formed a bearish candle as the key index rejected the upper Bollinger Band yesterday.

Indicators, however, remained positive as the moving average convergence divergence line trended above the zero level, while the RSI hovered above 50. Immediate resistance is located at 1,680. Support is envisaged around 1,630. - Aug 30, 2024

https://focusmalaysia.my/fbm-klci-trims-previous-gains-reit-sector-emerges-as-sole-outperformer/