KUALA LUMPUR (Jan 27): The FBM KLCI pared some of its gains at the midday break on Tuesday as losers overtook gainers and profit-taking reared its head.

At 12.30pm, the FBM KLCI was up 0.77 points to 1,797.21. The index had earlier risen to its intra morning high of 1,810.21.

Market breadth turned weaker with 335 losers and 318 gainers, while 311 counters traded unchanged. Volume was 1.12 billion shares valued at RM949.94 million.

The gainers included Danainfra Nasional Bhd, Vitrox Corporation Bhd, Panasonic Malaysia Manufacturing Bhd, Felda Global Ventures Holdings Bhd, MKH Bhd, My E.G. Services Bhd, KLCC Property Holdings Bhd, VS Industry Bhd and Petronas Dagangan Bhd.

The actives included Sanichi Technology Bhd, Systech Bhd, KNM Group Bhd, Hubline Bhd, EA Holdings Bhd, Minetech Resources Bhd and Felda Global.

The decliners included Kuala Lumpur Kepong Bhd, British American Tobacco (M) Bhd, DKSH Holdings Bhd, Rapid Synergy Bhd, LTKM Bhd, Malaysia Airports Holdings Bhd and LPI Capital Bhd.

Asian share markets were mostly firmer on Tuesday and the euro clung to rare gains, relieved that European equities had weathered Greece's election outcome without much disruption, according to Reuters.

Bad weather in the United States curbed activity on Wall Street in a busy week for earnings, while investors had reason for caution as the Federal Reserve holds its first policy meeting of the year, it said.

Maybank IB head of retail research and chief chartist Lee Cheng Hooi in a note to clients said the FBM KLCI declined 6.64 points to 1,796.44 yesterday, while the FBMEMAS and FBM100 also closed lower by 41.42 points and 35.60 points,respectively.

He said that in terms of market breadth, the gainer-to-loser ratio was 314-to-557 while 266 counters were unchanged, adding that a total of 1.88 billion shares were traded,valued at RM2.13 billion.

“We recommend a 'Buy on Dips' stance for the index. The KLCI Jan Futures moved into a 5.56-point discount against the FBM KLCI. We expect minor buying at the supports of 1,770 to 1,796, whilst some profit taking would be at the resistances of 1,798 and 1,813.

“The index will be volatile after heavy foreign selling emerged in Nov and the index plunged to a fresh low of 1,671.82 on 17 Dec.

“The rebound to 1,770.52 last Wednesday has negated medium-term bearishness to 1,630. In view of the volatile and weaker DJIA trend at lofty levels, it will be very wise to range trade the FBMKLCI between stipulated supports and resistances, with a more positive bias for the local index,” he said.