KLCI edges up but gains seen capped

-A +A

KUALA LUMPUR (April 26): The FBM KLCI edged up in early trade but gains are seen capped in line with the retreat at regional markets.

At 9.05am, the FBM KLCI  up 1.77 points to 1,637.45.

The gainers included Carlsberg Brewery Malaysia Bhd, Syarikat Takaful Malaysia Keluarga Bhd, G3 Global Bhd, United Plantations Bhd, Hap Seng Plantations Bhd, Unisem (M) Bhd, Petronas Chemicals Group Bhd, Bursa Malaysia Bhd and Malaysian Pacific Industries Bhd.

Asian stocks fell back Friday after mixed messages from U.S. benchmarks and as earnings season continued. The dollar steadied around a four-month high, while the yen gained ahead of Japan’s Golden Week holiday, according to Bloomberg.

Shares declined in Japan, Korea and Australia, and U.S. futures ticked lower. While the tech-heavy Nasdaq 100 reached a record following strong results from Microsoft and Facebook, the broader S&P 500 Index ended little changed after 3M cut its earnings forecast and UPS reported a profit drop. Treasuries edged higher, it said.

CIMB Retail Research said the local bourse closed mixed yesterday with gainers seen in Construction and Telecommunications while profit-taking was seen in the Energy sector.

“Chart-wise, there is no change in view from yesterday. The general trend for FBMKLCI remains bearish for the short as well as the longer term.

“Unless the index can close above 1,640, the odds would favour a retest of the 1,602-1,607 levels.

“However, if we see a close above 1,640, the index may be turning higher to first test 1,645 and eventually try to fill the 25th March’s gap of 1,652-1,666. Trading is still the key word for today. Resistance: 1,645 & 1,666. Support: 1,611 & 1,600,” it said.