KUALA LUMPUR (April 6): The FBM KLCI advanced in line with regional markets, but gains were seen limited for the local index amidst lack of fresh catalysts.
At 9am, the FBM KLCI added 3.78 points to 1,838.30.
The early gainers included Petronas Dagangan Bhd, UMW Holdings Bhd, MCT Bhd, IHH Halthcare Bhd, Opcom Holdings Bhd, Public Bank Bhd, Can-One Bhd, Tenaga Nasional Bhd and Hong Leong Bank Bhd.
Asian shares rose and the dollar dropped on Monday, after a dismal U.S. jobs report pushed up U.S. Treasury yields as investors pared bets the U.S. Federal Reserve would hike interest rates anytime soon, according to Reuters.
Labor Department data showed U.S. employers added the fewest jobs in more than a year in March. The rise of 126,000 jobs was well below expectations for a gain of 245,000, according to a Reuters poll of economists, it said.
Hong Leong IB Research in a market preview today said that tracking bullish China markets amid expectations of more monetary easing and the FBM KLCI’s recent breakout above downtrend line and 200-day moving average resistance coupled with potential return of foreign inflows amid expectations that the Fed may delay the rate hike and the greenback surge will take a breather out local market could head higher towards 1843-1850 in the short term.
“However, strong profit taking will cap further upside beyond 1850 amid lack of fresh catalyst,” it said.