KLCI rises 0.32% as buying momentum continues

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KUALA LUMPUR (March 21): The FBM KLCI rose 0.32% at mid-morning today as the buying momentum at the local market continued.

At 10.02am, the FBM KLCI rose 5.65 points to 1,755.06.

The gainers included Nestle (M) Bhd, Aeon Credit Service (M) Bhd, Fraser & Neave Holdings Bhd, George Kent (M) Bhd, Kumpulan Perangsang Selangor Bhd, Dutch Lady Milk Industries Bhd, Malaysian Pacific Industries Bhd and KESM Industries Bhd.

The actives included ManagePay Systems Bhd, Olympia Industries Bhd, PUC Founder (MSC) Bhd, Luster Corp Bhd, D.D.E.Gurney Bhd, Trive Property Group Bhd, Tanco Holdings Bhd and Hubline Bhd.

The decliners included Lafarge Malaysia Bhd, Tasek Corp Bhd, Teck Guan Perdana Bhd, Iskandar Waterfront City Bhd, Tasco Bhd, Dataprep Holdings Bhd and Public Bank Bhd.

Asian shares clung to their 15-month highs on Tuesday while the dollar and U.S. bond yields were on the back foot on the prospects of a less-hawkish Federal Reserve policy trajectory, according to Reuters.

In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent, staying near a 15-month high it touched on Monday, with South Korean shares hitting two-year highs, it said.

Hong Leong IB Research said the Stochastics oscillator is overbought and inverted hammer was formed around the resistance region of 1,750-1,760.

The research house said it expects short term pullback to emerge.

“FBM KLCI’s support will be located around 1,720-1,730.

“As both the US dollar and crude oil trended on a lackluster mode, we expect near term sentiments to trade on sluggish mode and the Dow may trade sideways below 21,000.

“Meanwhile, traders may take profit on counters that have rallied after an overheated trading week. Nevertheless, traders may rotate into laggard stocks under the technology and construction sectors,” it said.