KLCI edges up, gains seen limited

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KUALA LUMPUR (March 19): The FBM KLCI edged up in early trade but gains are seen limited as key momentum indicators remain bearish.

At 9.05am, the FBM KLCI added 1 point to 1,691.94.

The gainers included Carlsberg Brewery Malaysia Bhd, Allianz Malaysia Bhd, British American Tobacco (M) Bhd, Magni-Tech Industries Bhd, Nestle (M) Bhd, Lotte Chemical Titan Holding Bhd, Kawan Food Bhd, Kossan Rubber Industries Bhd and Petronas Chemicals Group Bhd.

Asian shares treaded water on Tuesday ahead of a U.S. Federal Reserve policy meeting, hovering near six-month highs, while sterling was choppy as the speaker of Britain's parliament banned another vote on same Brexit deal, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was virtually flat, just a hair away from the highest level since Sept. 21, it said.

Kenanga IB Research said Asian stock markets started the week on a positive note as investors anticipate for the Fed meeting that is happening later in the week.

It said back home, the FBM KLCI gained 10.40 points or 0.62% to close at 1,690.94.

“Despite the gains made, overall technical outlook still lacks positivity as key momentum indicators remain bearish.

“Should the index break above the 1,700 (R1) resistance level, technical outlook would then turn positive with next resistance identified at 1,730 (R2).

“Conversely, downside supports can be found at 1,650 (S1) and 1,630 (S2),” it said.