KLCI edges up, but gains seen limited

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KUALA LUMPUR (Nov 10): The FBM KLCI edged up in early trade on Monday in line with its regional peers, but gains were seen limited given the local market’s correction mode since last week.

At 9am, the FBM KLCI was up 0.28 points to 1,824.47.

The top gainers in early trade included United Plantations Bhd, Ducth Lady Milk Industries Bhd, Uzma Bhd, Carimin Petroleum Bhd, KSL Holdings Bhd, Pestech International Bhd and Malayan Banking Bhd.

Newly-listed Carimin rose 5.45% or six sen to 1.16 with 10.26 million shares done.

Regionally, Asian shares held firm in early Monday trade after U.S. jobs data pointed to solid economic growth, while China's export performance showed more resilience than some had expected, according to Reuters.

U.S. employers added 214,000 jobs in October, slightly below economists' median forecast of 231,000, but logging the ninth consecutive month of gains of more than 200,000, the longest stretch since 1994, it said.

Hong Leong IB Research in a markte preview Monday said that tracking most of the ASEAN bourses, the FBM KLCI slipped into correction mode after recent V-shaped relief rally from 1766 (15 Oct low), contrary to the Dow’s rally to record highs.

“Technically, the FBM KLCI was now in a precarious position, with the key index lingering below the 10-d/30-d/50-d100-d/200-d simple moving averagess and weakening oscillators, indicating more consolidation ahead with key supports near 1816 (38.2% FR) and 1800 levels.

“Weekly resistances are 1830-1840 zones,” it said.