KLCI up 0.79% in technical rebound, Maybank and TNB lift

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KUALA LUMPUR (Oct 12): The FBM KLCI rose 0.79% in a technical rebound at the midday break today, snapping its seven-day losing streak, lifted by index heavyweights including Malayan Banking Bhd (Maybank) and Tenaga Nasional Bhd (TNB).

At 12.30pm, the FBM KLCI rose 13.47 points to 1,721.96.

Gainers led losers by 433 to 326, while 1,113 counters traded unchanged. Volume was 1.22 billion shares valued at RM1.06 billion.

The gainers included Fraser & Neave Holdings Bhd, TNB, Heineken Malaysia Bhd, Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd, Hong Leong Bank Bhd, Petronas Gas Bhd, Maybank and CIMB Group Holdings Bhd.

The actives included Hibiscus Petroleum Bhd, Sapura Energy Bhd, Vortex Consolidated Bhd, Gamuda Bhd, My EG Services Bhd, Orion IXL Bhd, Borneo Oil Bhd and Lion Industries Corp Bhd.

The losers included Nestle (M) Bhd, Time dotCom Bhd, Latitude Tree Holdings Bhd, Axiata Group Bhd, Sarawak Plantation Bhd, Pineapple Resources Bhd, MISC Bhd and Adventa Bhd.

Southeast Asian stock markets edged higher on Friday, recovering from the previous session's sharp falls after a weaker-than-expected rise in US inflation for September partly tempered expectations of more aggressive Federal Reserve interest rate hikes, according to Reuters.

The US Consumer Price Index (CPI) rose 0.1% last month after climbing 0.2% in August. Excluding the volatile food and energy components, the CPI edged up 0.1% for the second straight month, after gaining 0.2% in May, June and July, it said.

Kenanga IB Research said Asian markets sold off yesterday following the plunge in the US market overnight as investors' confidence took a fresh blow.

It said back home, the FBM KLCI dived another 26.69 points or 1.54% to close lower at 1,708.49.

The research house said that chart-wise, the index continued to plunge below the target of the "head-and-shoulders" pattern, punching through both its prior support levels.

It said overall technical picture remains bearish as the index broke below the "head-and-shoulders" pattern.

"However, we note that yesterday's close saw a formation resembling that of a bullish reversal 'hammer' pattern which could see an immediate relief-rebound, filling up yesterday's gap-down.

"Key levels of resistance to look at are 1,730 (R1) and 1,760 (R2).

"Conversely, immediate support levels can be identified at 1,700 (S1) and 1,660 (S2)," it said.