KLCI edges up in line with regional gains

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KUALA LUMPUR (March 12): The FBM KLCI edged up in early trade this morning, in line with the gains at most regional markets.

At 9.05am, the FBM KLCI rose 3.77 points to 1,668.40.

The early gainers included Allianz Malaysia Bhd, Heineken Malaysia Bhd, Hengyuan Refining Company Bhd, Petronas Gas Bhd, Westports Holdings Bhd, PPB Group Bhd and Hong Leong Industries Bhd.

Stocks in Asia climbed after U.S. shares gained overnight, while the pound jumped after the U.K. and European Commission modified their Brexit deal ahead of a key vote in Britain’s parliament, according to Bloomberg.

Japanese stocks advanced more than 1 percent at the open, leading gains in Australia and South Korea. Futures suggested shares will trade higher in Hong Kong. U.S. futures advanced after the S&P 500 and Nasdaq 100 surged on Monday, spurred by tech stocks that benefited from merger news and an upgrade to Apple Inc., and by signs of stabilization in American retail sales. Energy stocks also gained after a rise in crude oil, thanks to Saudi Arabia extending deeper-than-agreed production cuts into a second month, it said.

Kenanga IB Research said Asian share markets closed mostly higher with the China market leading the gains amidst positive hope towards its economy. 

It said bucking the trend, the FBM KLCI slipped 15.27 points (-0.91%) to close at 1,664.63, led by mainly by losses from glove counters.

“Overall, the technical outlook appears lacklustre currently as key momentum indicators are bearish.

“The index is likely to trend lower to its support level at 1,650 (S1) and even 1,630 (S2).

“Should there be positive global development, the index may test its immediate resistance at 1,700 (R1) followed by 1,730 (R2),” it said.