KLCI up 0.4% on technical rebound but global volatility seen curbing gains

opening_market_up_theedgemarkets

opening_market_up_theedgemarkets

-A +A

KUALA LUMPUR (Oct 23): The FBM KLCI rose 7.58 points or 0.4% on technical rebound despite overnight US market losses as investors eyed lower crude oil prices.

At 9.08am, the KLCI was traded at 1,803.8 on gains in stocks like Genting Bhd and Kuala Lumpur Kepong Bhd.

Analysts said while the KLCI was ripe for technical rebound, the rebound would not be smooth due to volatile global markets.

Hong Leong Investment Bank Bhd analyst Nick Foo Mun Pang said "sentiment could be affected by external volatility and potential hurdles in the CIMB/RHBCAP/MBSB mega bank merger after Bursa disallowed EPF to vote by virtue of EPF being the common major shareholder in all three affected companies.

"Moreover, a sharp fall below 1,766 will reignite force selling and margin calls activities."

Bursa Malaysia saw some 63 million shares worth RM44 million changed hands. There were 132 gainers versus 66 decliners.

The top gainer was Genting while leading decliner was Syarikat Takaful Malaysia Bhd. The most-active stock was Talam Transform Bhd.

Across Asia, Japan's Nikkei 225 fell 0.52% while Austalia's S&P/ASX 200 added 0.13%. South Korea's Kospi rose 0.06%.

Bloomberg reported that Asian stocks fell, paring yesterday’s jump, after US shares declined and as investors awaited preliminary data on China’s manufacturing.

A preliminary reading of China’s October manufacturing as measured by HSBC Holdings Plc and Markit Economics may come in at 50.2, according to the median estimate of analysts, unchanged from the previous month’s final number.