Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 24): The FBM KLCI pared some of its loss at the midday break on Wednesday as most global markets rose on the back of firm overnight close at Wall Street and European markets.

But overall sentiment remained tepid at the local market ahead of the Christmas holiday tomorrow.

At 12.30pm, the FBM KLCI fell 2.17 points to 1,746.88. The index had earlier dipped to a low of 1,732.15.

Market breadth turned negative with 374 losers against 218 gainers, while 284 counters traded unchanged. Volume was 588.22 million shares valued at RM410.78 million.

The top losers included British American Tobacco (M) Bhd, Hong Leong Bank Bhd, Dutch Lady Milk Industries Bhd, Sime Darby Bhd, Public Bank Bhd, PPB Group Bhd, Boustead Holdings Bhd and CIMB Group Holdings Bhd.

The actively traded stocks included Hubline Bhd, Icon Offshore Bhd, Tiger Synergy Bhd, Sumatec Resources Bhd, Kronologi Asia Bhd and Technodex Bhd.

The top gainers included UMW Holdings Bhd, Tasek Corporation Bhd, United Plantations Bhd, Kuala Lumpur Kepong Bhd, KPJ Healthcare Bhd, Fraser & Neave Holdings Bhd, APM Automotive Bhd, Top Glove Corporation Bhd and GD Express Carrier Bhd.

Regionally, Japanese stocks rallied and the dollar stood tall on Wednesday thanks to surprisingly robust U.S. economic growth, helping investors head into the Christmas holidays in a more relaxed mood after the global markets turbulence of the past two weeks, according to Reuters.

Risk appetite got a helping hand from revised data showing the U.S. economy grew at a 5.0 percent clip in the third quarter, its quickest pace in 11 years and the strongest sign yet that growth has decisively shifted into higher gear, it said.

Jupiter Securities Sdn Bhd chief market strategist Benny Lee said that technically, the FBM KLCI was still in a downtrend despite the sharp rebound last week.

He said the index was still below the short-term 30-day moving average at 1,773 points and the long-term 200-day moving average at 1,843 points.

Lee said both these moving averages were declining.

“Furthermore, the index is also below the Ichimoku Cloud indicator. However, the Cloud is narrow and this indicates that the index can be volatile and can easily change direction.

“The Cloud remains narrow in the next two weeks,” he said.

Lee also said the bullish momentum last week might continue this week with some resistance and hence a subdued bullish week could be expected.

He said the market might face resistance when the index approaches the 1,760-point level, which was previously a support level.

“Therefore, the index is not out of the bearish trend unless it can break and stay above 1,760 points.

“With the year coming to an end, we expect the market to be window-dressed but this only benefit blue-chip stocks supported by local institutions.

“The retail market would probably stay out for the rest of the year and foreign institutions may continue to sell,” said Lee.

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