KLCI edges up, gains seen limited on profit taking

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KUALA LUMPUR (April 7): The FBM KLCI edged up in early trade today but gains are seen limited on possible profit taking.

At 9am, the FBM KLCI gained 0.24 points to 1,843.18.

The top gainers included United Plantations Bhd, Favelle Favco Bhd, Petronas Dagangan Bhd, Tenaga Nasional Bhd, Uzma Bhd, Carlsberg Brewery (M) Bhd, MISC Bhd, Pharmaniaga Holdings Bhd and Top Glove Corporation Bhd.

Asian stocks followed a positive lead from Wall Street to rise on Tuesday, while the dollar held its gains after rebounding against the euro and yen on higher U.S. Treasury yields, according to Reuters.

The region's focus fell on the Reserve Bank of Australia's policy decision due later in the session. Expectations are that the central bank would further cut interest rates in the wake of falling prices of iron ore, the country's biggest export, it said.

Hong Leong IB Research in a market preview today said that tracking positive regional markets in anticipation of more easing monetary policies from China, abundant liquidity from ECB and BOJ QEs measures, potential return of foreign inflows amid expectations of a delayed rates hike coupled with a decisive breakout above 200-day simple moving average, the FBM KLCI could extend its upside gains towards 1850 and 1858 (3 Nov high) zones in the short term.

“Key supports are 1811-1821,” it said.