KLCI up 0.20%, remains above 1,740 resistance level

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KUALA LUMPUR (Oct 17): The FBM KLCI was up 0.20% at midday break, above its 1,740-point resistance level, tracking gains at regional markets.

At 12.30pm, the FBM KLCI was up 3.54 points to 1,740.38. The index had earlier risen to a high of 1,742.80.

Gainers led losers by 453 to 240, while 1,205 counters traded unchanged. Volume was 1.07 billion shares, valued at RM919.88 million.

Top gainers included British American Tobacco (M) Bhd, Carlsberg Brewery Malaysia Bhd, Lion Forest Industries Bhd, KESM Industries Bhd, Kossan Rubber Industries Bhd, SAM Engineering & Equipment Bhd, Aeon Credit Service (M) Bhd, Genting Malaysia Bhd, UME Holdings Bhd and Malaysian Pacific Industries Bhd.

The actives included Borneo Oil Bhd, Hibiscus Petroleum Bhd, Barakah Offshore Petroleum Bhd, Nova MSC Bhd, XOX Bhd, Malaysian Resources Corp Bhd, Vortex Consolidated Bhd and My EG Services Bhd.

The decliners included Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Nestle (M) Bhd, Apex Healthcare Bhd, UOA Development Bhd, Cahya Mata Sarawak Bhd, RHB Bank Bhd and Top Glove Corp Bhd.

Asian equities got some welcome relief on Wednesday, after upbeat U.S. earnings reports drove a rebound on Wall Street and helped restore a little faith in emerging market stocks and currencies, according to Reuters.

Japan's Nikkei galloped out of the gates with a rise of 1.7%, but still has a long way to go to recoup the past week's losses, it said.

Kenanga IB Research said Asian markets ended mostly higher on improved investors’ sentiment, as oil sectors lifted the market.

Back home, the FBM KLCI gained 8.10 points (+0.47%) to close at 1,736.84, it said.

“Technically, the outlook remains bearish, following the emergence of an earlier “head-and-shoulders” reversal chart pattern. On the shorter-term, we still believe the relief rebound is losing momentum, given yesterday’s failure to close above the high of previous “Bearish pin bar” candlestick pattern.

“Key levels of resistance to look at are 1,740 (R1) and 1,760 (R2). Conversely, lower support levels can be identified at 1,700 (S1) and 1,660 (S2),” the research house said.