KUALA LUMPUR (Jan 11): The FBM KLCI notched up limited gains at the midday break today, after a World Bank report highlighted Malaysia as a large, financially-integrated economy with sizeable external, foreign-currency denominate, and/or short-term debt, being among the most exposed countries to the U.S. Federal Reserve’s anticipated interest rate rise.
According to the Global Economic Prospects report, titled Weak Investment in Uncertain Times released by the World Bank yesterday, Malaysia could also face slow growth by an increase in global risk aversion, apart from the rate hike.
At 12.30pm, the FBM KLCI was up 2.16 points to 1,674.21. The index had earlier slipped to its intra-morning low of 1,671.23.
Gainers led losers by 342 to 301, while 354 counters traded unchanged. Volume was 1.61 billion shares, valued at RM832.15 million.
The gainers included SAM Engineering & Equipment Bhd, Kuala Lumpur Kepong Bhd, Malaysian Pacific Industries Bhd, British American Tobacco (M) Bhd, Tenaga Nasional Bhd, Heineken Malaysia Bhd, Ta Ann Holdings Bhd, Sarawak Oil Palms Bhd and Inari Amertron Bhd.
The actives included IFCA MSC Bhd, Hibiscus Petroleum Bhd, Sumatec Resources Bhd, Malaysia Building Society Bhd, Sanichi Technology Bhd, Hovid Bhd and Iris Corp Bhd.
The decliners included Nestle (M) Bhd, PPB Group Bhd, Box-Pak (Malaysia) Bhd, Hap Seng Consolidated Bhd, Tasek Corporation Bhd, Petronas Gas Bhd and Apex Healthcare Bhd.
Reuters cited Asian shares pulled ahead to two-month highs on Wednesday, as investors looked to President-elect Donald Trump's news conference later in the day for any clues with regards to his policies on tax, fiscal spending, international trade and currencies.
While his plan for tax cuts and infrastructure spending has boosted U.S. shares and the dollar, his protectionist statements during the months-long election campaign have kept many investors on edge, it said.
Kenanga IB Research said key Asian markets were mixed yesterday, while the FBM KLCI rose 4.15 points (+0.25%) at 1,672.05, amid a choppy session which saw the local benchmark vacillating between gains and losses.
It said sentiment on the broader market was also stronger, with 414 gainers outnumbering the 368 losers, and 369 counters traded unchanged.
“Chart-wise, the FBMKLCI’s shorter term trend remains positive, as the key index remains firmly above all 3 key moving averages.
“In fact, the 20-day SMA has just crossed above the 50-day SMA in a move last seen in July, while the MACD remains in a bullish state.
“As such, the FBM KLCI remains positively biased, despite the recent days’ sideways pause.
“Immediate resistance levels to look out for are 1,680 (R1) and 1,692 (R2), while support levels are located at 1,665 (S1) and 1,657 (S2) below,” it said.