KUALA LUMPUR: The FBM KLCI opened slightly higher on Friday, bucking a subdued overnight performance on Wall Street, although investors remained cautious amid elevated bond yields and oil prices.

Overnight, the S&P 500 declined 0.02% to end the session at 7,704.13 points.

The Nasdaq edged up 0.01% to 26,939.37 points, while the Dow Jones Industrial Average declined 0.31% to 51,349.98 points.

The FBM KLCI rose 1.21 points, or 0.07%, to 1,673.52 at 9.15am after opening 2.56 points higher at 1,674.87.

Among the early gainers were utilities and renewable energy counters, with Northern Solar rising 9.32% to RM1.29, Solarvest gaining 3.08% to RM4.02 and Tenaga Nasional advancing 0.77% to RM13.16.

Other gainers included Hong Leong Financial Group, which added 10 sen to RM18.96, PETRONAS Dagangan, up 10 sen to RM20.10, and Press Metal

Aluminium, which gained three sen to RM7.49.

Among the decliners, Nestle slid 78 sen to RM90.68, Malaysian Pacific Industries

fell 28 sen to RM43.22, Dutch Lady

shed 26 sen to RM30.10, while PETRONAS Chemicals lost 10 sen to RM4.48.

Berjaya Research Sdn Bhd maintained a cautious bias on the FBM KLCI in the near term, as external factors continued to weigh on market sentiment and limit risk appetite.

“The recent pullback, coupled with broad-based weakness and late-session selling in selected index heavyweights, suggests that investors remain selective amid the uncertain external backdrop,” the research house said.

At the same time, Berjaya Research said rising bond yields could further curb risk appetite in the equities market.

From a technical perspective, the key index formed another bearish candlestick following a choppy trading session.

Immediate resistance levels remained at 1,687 points and 1,700 points, while support levels were pegged at 1,660 points and 1,655 points, respectively.

“The broader market is expected to remain indifferent as bouts of profit-taking continue while awaiting fresh catalysts to emerge.

“Nevertheless, the spike in oil prices may present some trading opportunities within oil & gas-related stocks today,” it added.

Similarly, Malacca Securities expects the FBM KLCI to remain cautious amid elevated bond yields and oil prices, although upstream oil and gas (O&G) counters could continue to attract trading interest.

The research house said Hibiscus Petroleum offered direct exposure to higher oil prices, with production reaching about 32,000 barrels of oil equivalent per day (boe/d) in July and FY2027 sales guided at 10.7 million to 11.2 million boe.

Meanwhile, Dayang Enterprise

remained supported by its order book of more than RM4bil, with a RM1bil Saudi maintenance, construction and modification tender offering additional upside potential.

Elsewhere, Deleum continued to offer earnings visibility backed by its RM2.4bil order book, supported by ongoing production optimisation, maintenance and asset-enhancement activities.