KUALA LUMPUR: Fund buying on Tanjong, CIMB and Axiata enabled the FBM KLCI to stay above the 1,290 level at the midday break on Wednesday, Jan 6, as the positive sentiment was also reflected in the key regional markets.

Recent positive economic data sustained buying interest in regional markets. Crude palm oil futures rose RM39 to RM2,739 per tonne for the third-month delivery, the highest since July 2008, which would spark more interest in plantations.

At 12.30pm, the FBM KLCI was up 2.07 points to 1,290.31. Turnover was 914.4 million shares valued at RM769.46 million. There were 315 gainers, 321 losers and 633 stocks unchanged.

Hong Kong's Hang Seng Index added 0.84% to 22,465.75, Japan's Nikkei 225 rose 0.68% to 10,753.97 while Singapore's Straits Times Index gained 0.51% to 2,935.05. Shanghai's Composite Index was 0.3% higher at 3,291.93.

Light crude oil was unchanged at US$81.77 while US spot gold rose US$6.02 to US$1,124.02.

On the outlook for the 30-stock FBM KLCI, RHB Research said the next resistance for the benchmark index was at 1,300.  
"The FBM KLCI retested the November high of 1,288.42 before closing at 1,288.24 yesterday. Despite a close that fell short of the Nov high, we remain very bullish on the immediate-term outlook given the positive chart development in recent trading.    

"Technically, a breakthrough from the November's high will spell further short-term upside towards the 1,300 psychological resistance barrier," it said.

RHB Research said with the robust buying interests that spread across the board with recent strong volume, it expected the bullish momentum on the market to persist.

"Though we do not expect an immediate removal of the 1,300 psychological level, a hike nearer to the psychological hurdle will be enough to lift the sentiment another notch higher.  This, as we believe, will offer a good impetus to generate a second round of rally to take off 1,300 in the later date," it added.

The research house said it was sticking to its bullish short-to-medium-term outlook on the FBM KLCI and expect a potential test of 1,390 in the first half of this year.

Supermax rose 28 sen to RM4.98 with 3.74 million shares done after OSK Investment Research kept the stock as a top buy ahead of its upcoming good results in February. Other glove makers also rose, including Hartalega, up 21 sen to RM6.42 and Adventa 17 sen to RM3.30.

Ho Hup rose 27 sen to RM2.03 as a boardroom battle looms. There were 5.14 million shares done.

L&G rose nine sen to 54 sen with 71 million shares done after a positive report by CIMB Research about the positive outlook for the company.
Scomi rose three sen to 51 sen, Scomi-LA one sen to 12.5 sen and Scomi-WA six sen to 32 sen.

Among the FBM KLCI stocks, Tanjong rose 34 sen to RM17.90, BAT 22 sen to RM42.92, KLK 12 sen to RM16.96, CIMB gained six sen to RM13.04, Public Bank four sen to RM11.40 and Axiata three sen to RM3.13.

Genting fell the most among the FBM KLCI stocks, down seven sen to RM7.54, Genting Malaysia five sen to RM2.90 as some investors could have been disappointed over the delay in the opening of the casino at the Resorts World at Sentosa.

Tenaga gave up four sen to RM8.35 and MISC one sen to RM8.50.