KLCI advances in relief rally

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KUALA LUMPUR (May 26): The FBM KLCI rose at mid-morning in a brief relief rally after being grossly oversold a day earlier.

At 10am, the FBM KLCI climbed 6.13 points to 1,773.51, lifted by select blue chips on bargain hunting.

The top gainers included British Americxan Tobacco (M) Bhd, PPB Group Bhd, Petronas Dagangan Bhd, Kuala Lumpur Kepong Bhd, United Plantations Bhd, Nestle (M) Bhd, Far East Corporation Bhd, KLCC Property Holdings Bhd, Syarikat Takaful Malaysia Bhd and Public Bank Bhd Bhd.

The actives included AirAsia Bhd, Fronteken Corporation Bhd, IFCA MSC Bhd, Vosllar Group Bhd, Sumatec Resources Bhd, Iris Corporation Bhd and Nova MSC Bhd.

The top losers included Petronas Gas Bhd, Dutch lady Milk Industries Bhd, Genting Plantations Bhd, Malaysia Aiorports Holdings Bhd, Danainfra Nasional Bhd, Oriental Holdings Bhd, Carlsberg Brewery (M) Holdings Bhd, Guiness Anchor Bhd and IJM Corporation Bhd.

Asian shares fell in early trading on Tuesday, while the dollar held near highs scaled in holiday-thinned trading in the previous session, according to Reuters.

European shares marked a weak finish in thin trade on Monday, with many markets in the region closed for holidays. U.S. markets were also closed for Memorial Day, it said.

Hong Leong IB Research said that after nose-diving 5.3% from year-to-date high of 1867.5 on May 13 to 1767.4 yesterday, the FBM KLCI was grossly oversold (FIG1 &2) and we do not discount a relief rally in the near term.

“However, sentiment remains fragile and any rebound is likely to be capped near 1800 levels amid nagging domestic concerns.

“After breaking key support of 1770 (50% FR) yesterday, the FBM KLCI is slated to revisit 1740-1750 zones, with stronger floor at 1717 (76.4% FR),” it said.