KUALA LUMPUR (Nov 20): The FBM KLCI pared some of its gains at mid-morning as regional markets back pedalled.
At 10am, the FBM KLCI gained 1.09 points to 1,722.75. The index had earlier risen to a high of 1,725.35.
The gainers included Nestle (M) Bhd, Malaysian Pacific Industries Bhd, British American Tobacco (M) Bhd, TRIplc Bhd, Top Glove Corp Bhd, Hock Heng Stone Industries Bdh, Goh Ban Huat Bhd, Hartalega Holdings Bhd, IQ Group Bhd and BSL Corp Bhd.
The actives included Sumatec Reources Bhd, Trive Property Group Bhd, Kejuruteraan Asastera Bhd, DGB Asia Bhd, Vivocom Intl Holdings Bdh, Diversified Gateway Solutions Bhd, Ho Wah Genting Bhd, Hibiscus Petroleum Bhd and TH Heavy Engineering Bhd.
The losers included KESM Industries Bhd, Hong Leong Financial Group Bhd, ViTRox Corp Bhd, OSK Ventures International Bhd, Petronas Dagangan Bhd and Petron Malaysia Refining & Marketing Bhd.
Asian shares started the week on the back foot on Monday, pressured by a retreat on Wall Street amid tax reform uncertainty while the euro skidded after German coalition talks hit an impasse, according to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan was nearly flat in early trade, it said.
Hong Leong IB Research in a traders’ brief said the Dow’s downside risks are likely to be well cushioned for the time being amid positive economy and corporate earnings outlook coupled with supportive monetary policies.
“Hence, the Dow may be trapped in range bound consolidation within 22,800 to 24,000 over the near term until clarity of the tax overhaul details.
“On Bursa Malaysia, we anticipate further mild rebound this week from a grossly oversold market, supported by hook-up in indicators as well as Ringgit and oil price strength.
“However, any rebound may be capped near 1728 (38.2% FR) and 1739 zones as market sentiment is likely to retain a cautious mode amid ongoing 3Q17 reporting season and FBM KLCI index rebalancing exercise on 30 Nov coupled with political uncertainty ahead of the upcoming GE14.
“Key supports are 1700-1706. Formidable resistance is 1752 or 200-d SMA,” it said.