Ringgit opens flat on caution after recent gains

KUALA LUMPUR: Malaysia's blue chips remain on a steady rise after another record-breaking session on Wall Street overnight, bolstered by surging hopes of a US rate cut in September. The major US indices ended with the S&P500 and Nasdaq at fresh record highs after putting on 0.32% and 0.14% respectively, adding fuel to a searing-hot rally as investors reacted to a lower-than-expected inflation report that suggested the Federal Reserve could loosen the lending rate at its next monetary policy meeting. Malaysia's FBM KLCI, which has seven consecutive days of gains under its belt, opened 0.31 points higher at 1,586.91 - suggesting continued upward momentum. Gains, however, are expected to be capped given the overbought prices of domestic stocks. According to TA Securities's daily commentary, overbought technical conditions may curb further gains as investors begin to lock in profits from the recent rally. However, the research firm noted the local market is expected to extend its upward momentum on the back of US interest rate trends. "Immediate resistance is maintained at 1,610, the 76.4%FR, with next upside hurdle at the December 2024 high of 1,644, followed by stronger resistance at 1,684. Immediate support is kept at the 50%FR (1,527) with stronger supports seen at the 38.2%FR (1,490) and the 23.6%FR (1,444)," it said in a note. Rakuten Trade said in a note the FBM KLC is expected to test the 1,600 level soon, which will eventually improve overall trading volume on the local bourse. "We expect buying momentum to persist, hence expect the index to hover within the 1,580-1,600 range today," it added. Leading advancing stocks included VSTECS, rising 19 sen to RM3.60 following a positive quarterly result announced yesterday. MISC rose seven sen to RM7.81, Theta Edge gained six sen to 96 sen and Britsh American Tobacco added six sen to RM5.03. Oxford Innotech led actives, gaining three sen to 41 sen. Rounding out the Top 3 most active stocks, MTouche rose 0.5 sen to 3.5 sen and iCents gained 0.5 sen to 43 sen. Read full story