KLCI claws back to rise 0.74% as select blue chips lift

KLCI claws back to rise 0.74% as select blue chips lift
-A +A

KUALA LUMPUR (March 11): The FBM KLCI clawed back into positive territory at mid-morning and rose 0.74% as select blue chips lifted after a subdued start earlier, in line with the pause at most global markets.

At 10am, the FBM KLCI rose 10.69 points to 1,441.16. The index had earlier slipped to a low of 1,428.59.

Gainers led losers by 428 to 172, while 275 counters traded unchanged. Volume was 1.11 billion shares valued at RM496.39 million.

The top gainers included Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd, MISC Bhd, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Malaysia Airports Holdings Bhd, Kuala Lumpur Kepong Bhd, KESM Industries Bhd, G3 Global Bhd and Yinson Holdings Bhd.

The actives included Vortex Consolidated Bhd, Bumi Armada Bdh, Sapura Energy Bhd, Velesto Energy Bhd, Perdana Petroleum Bhd, Dayang Enterprise Holdings Bhd, Hibiscus Petroleum Bhd, Alam Maritim Resources Bhd and Datasonic Group Bhd.

The decliners included Nestle (M) Bhd, Allianz Malaysia Bhd, Hap Seng Plantations Bhd, Ta Ann Holdings Bhd and Manulife Holdings Bhd.

Reuters said Asian shares and Wall Street futures fell on Wednesday as growing scepticism about Washington's stimulus package to fight the coronavirus outbreak knocked the steam out of an earlier rally.

Markets had been recovering from a brutal global sell-off on Monday that was triggered by the double shock of an oil price crash and the worsening outbreak, it said.

Hong Leong IB Research said despite a commendable 4.9% rebound overnight, investors are likely to witness an extended consolidation with wild swings on the Dow in the near term amid lingering concerns about the economic impact as the Covid-19 outbreak has the potential to become a pandemic and investors remain attuned to any decisive policy action from the White House either related to a financial stimulus effort or Covid-19 mitigation plan.

“Key supports are near 24,000-23,600 whilst resistances fall on 25,800-26,200 zones. The current downtrend will only end when the Dow can successfully reclaim above 200D SMA resistance near 27,239.

“On the back of overnight rebound on Wall Street and oil prices coupled with the announcement of a generally capital market-friendly and pragmatic Cabinet line-up and Prime Minister [Tan Sri] Muhyiddin Yassin’s commitment to mending the economy, we expect KLCI to test 1,438-1,450 levels, followed by the stiffer resistance at 1,460-1,480 gap.

“Near-term supports are situated at 1,415 (Mar 10 low) and 1,400,” it said.