KLCI defends 1,600-level, dips as blue chips weigh

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KUALA LUMPUR (Sept 11): The FBM KLCI defended its 1,600-point level at mid-morning despite being weighed by losses including at index-linked banking stocks.

At 10.01am, the FBM KLCI was down 6.38 points to 1,607.64.

The top losers included United Plantations Bhd, British American Tobacco (M) Bhd, Genting Plantations Bhd, Public Bank Bhd, CIMB Group Holdings Bhd, Genting Bhd, Malayan Banking Bhd, Lafarge Malaysia Bhd, QL Resources Bhd and RHB Capital Bhd.

The actively traded stocks included UEM Sunrise Bhd, AirAsia Bhd, Frontken Corporation Bhd, Iris Corporation Bhd, KNM Group Bhd, Perisai Petroleum Bhd, Sumatec Resources Bhd and PDZ Holdings Bhd.

The top gainers included MISC Bhd, Kuala Lumpur Kepong Bhd, Lii Hen Industries Bhd, LPI Capital Bhd and Petronas Gas Bhd.

Asian shares rose on Friday thanks to gains on Wall Street, while the dollar steadied after facing pressure from a rallying yuan and U.S. data that offered no clarity on whether the Federal Reserve might raise interest rates next week, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.2%, on track for a 3% rise for the week, it said.

Hong Leong IB Research said the FBM KLCI was seen aiming to hold above the psychologically crucial 1,600 level and likely to test 1,625 area ahead of Malaysia Day (which is on Sept 16, 2015).

“However, unless a clear reversal signal is seen, we are of the view that any rallies are not sufficient to alter current downtrend despite its grossly oversold condition due to significant ringgit; weak crude oil prices; potential another round of foreign selldown in Malaysian Government Securities; and lingering local political issues,” it said.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)