KLCI edges up in early trade, Cocoland shines on takeover offer

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KUALA LUMPUR (June 3): The FBM KLCI edged up in early trade today, while Cocoland Holdings Bhd jumped 25% on the takeover offer for the company’s shares.

At 9.05am, the FBM KLCI rose 5.53 points to 1,746.90.

The top gainers included British American Tobacco (M) Bhd, Cocoland, Y&G Holdings Bhd, Sarawak Oil Palms Bhd, Petronas Dagangan Bhd, Petronas Gas Bhd, Hong Leong Financial Group Bhd, PPB Group Bhd, Kuala Lumpur Kepong Bhd, Genting Plantations Bhd, Pos Malaysia Bhd and Hong Leong Bank Bhd.

Equity markets in Asia slipped early on Wednesday as a widespread spike in debt yields dented the allure of risky assets, while the euro stood tall after surging on upbeat euro zone inflation data and hopes that Greece will reach a deal with its creditors, according to Reuters.

Japan's Nikkei lost 0.6 percent while Australian shares shed 0.5 percent and South Korea's Kospi dipped 0.1 percent, it said.

Hong Leong IB Research in a market preview today said the chart showed that selling pressure is fading as oversold level attracts buyers near support of 1734.

“Hence, KLCI might stage a technical rebound today.

“Nevertheless, the medium-term trend of CI still remains down given current subdued trading environment could persist as investors refrain from trading commitments amid uncertainties over the near-term market direction, amid the lack of fresh catalysts and nagging domestic issues.

“For a resumption of uptrend, the FBM KLCI must swiftly recapture the 1788 (downtrend line from all time high of 1896). On the flipside, next support areas are the 1715-1733 gap recorded on 15 Dec,” it said.