FBM KLCI snaps two-day losing streak, volatility remains

FBM KLCI snaps two-day losing streak, volatility remains
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KUALA LUMPUR (Jan 27): The FBM KLCI finished 5.31 points or 0.34% higher at 1,580.62, snapping a two-day losing streak.

However, Hong Leong Investment Bank's head of retail research Ng Jun Seng opined that volatility remains.

The index rose to a high of 1,593.08 earlier.

Ng said investors were still assessing the impact of the recent Movement Control Order on the economy and corporates.

He also reckoned that buying interest was weak ahead of the holidays (Thaipusam on Jan 28 and Federal Territory Day on Feb 1).

“There is a cap on the upside at this juncture. Based on technical terms, if the market can’t reclaim above the 1,600 psychological level, the KLCI will be stuck at range bound,” he told thedgemarkets.com.

He also noted the market was lacking a catalyst to move on as Covid-19 cases remained elevated.

“Volatility will remain for a while, investors should be more short-term trading oriented,” he added.

Across Bursa Malaysia, 5.64 billion securities were traded for RM4.98 billion, compared with 5.93 billion securities worth RM4.74 billion yesterday.

Gainers led losers by 614 to 525, while 454 counters closed unchanged.

The Technology Index continued to gain traction, rising 3.11% to 83.43. The top gainers were led by KESM Industries Bhd which advanced RM1.20 or 7.5% to RM17.20. Malaysian Pacific Industries Bhd also climbed 88 sen or 2.72% to RM33.28, making it the third top gainer.  

Nestle (M) Bhd (up RM1 or 0.73% to RM138.50), and Amtel Holdings Bhd (up 53 sen or 14.25% to RM4.25) were also among the top gainers.

Top losers were led by Heinekan Malaysia Bhd, which fell 46 sen or 1.99% to RM22.70. This was followed by Kuala Lumpur Kepong Bhd which dropped by 38 sen or 1.62% to RM23.10 and Hartalega Holdings Bhd which slipped by 24 sen or 1.93% to RM12.20.

Regional bourses were mixed today.

Japan’s Nikkei 225 closed 0.31% higher at 28,635.21, Korea’s Kospi ended 0.57% lower at 3,122.56 and Hong Kong’s Hang Seng finished 0.32% lower at 29,297.53.

Joyce Goh