KLCI advances on brief technical respite, gains seen limited

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KUALA LUMPUR (June 12): The FBM KLCI rose in early trade in line with the oevrnight gains at most global markets, but gains were seen limited given lingering lack of fresh catalyts at the local market.

At 9am, the FBM KLCI rose 6.23 points to 1,740.99.

The top gainers included Petronas Gas Bhd, Kuala Lumpur Kepong Bhd, Hong Leong Financial Group Bhd, Genting Plantations Bhd, Hong Leong Bank Bhd, Bursa Malaysia Bhd, Time Dotcom Bhd and MISC Bhd.

Hong Leong IB Research in a market preview today said that having nose-dived 7.1% or 133 points in six weeks from year-to-date high of 1,867 (April 27) to 1,735 yesterday, the research house still believed Bursa Malaysia may enjoy a brief technical rebound in the near term, given the presence of local funds support ahead of the widely-anticipated June window dressing and oversold technical momentum.

“Immediate resistance levels are situated at 1746 (61.8% FR) and 1769 (50% FR).

“However, any rebound may be capped near 1769 zones amid nagging domestic issues,” it said.