KLCI erases earlier loss, crosses 1,800-level

KLCI erases earlier loss, crosses 1,800-level

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KUALA LUMPUR (Sept 27): The FBM KLCI erased its earlier losses and rose at mid-morning to cross the 1,800-point level.

At 10am, the FBM KLCI rose 3.69 points to 1,802.41. The index had earlier slipped to a low of 1,794.71.

Losers led gainers by 251 to 231, while 303 counters traded unchanged. Volume was 536.98 million shares valued at RM303.50 million.

The gainers included British American Tobacco (M) Bhd, Petronas Gas Bhd, United Plantations Bhd, Tenaga Nasional Bhd, Press Metal Aluminium Holdings Bhd, LPI Capital Bhd, Aeon Credit Service (M) Bhd, ViTRox Corp Bhd and Axiata Group Bhd.

The actives included Sapura Energy Bhd, Scomi Group Bhd, Pesona Metro Holdings Bhd, Hibiscus Petroleum Bhd, My EG Services Bhd, Ni Hsin Resources Bhd and Hiap Teck Venture Bhd.

The losers included Hong Leong Industries Bhd, Tasek Corp Bhd, Hai-O Enterprise Bhd, Allianz Malaysia Bhd, MSM Malaysia Holdings Bhd, Panasonic Manufacturing Malaysia Bhd and United Malacca Bhd.

Global equities ran out of steam and U.S. bond yields fell after the Federal Reserve raised interest rates as expected, sticking to its script of gradual policy tightening with forecasts of five more rate hikes by 2020, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.05 percent in early trade while Japan's Nikkei fell 0.45 percent, it said.

Kenanga IB Research said Asian markets ended mostly higher yesterday despite US reiterating its tough stance on trade.

It said that similarly, the FBM KLCI saw gains of 0.24% or 4.25 points to close at 1,798.72, with Axiata Group Bhd leading the gains at 4.17%.

“Chart-wise, the underlying uptrend remains intact. However, we note that the index is trending just below the 20-day SMA, possibly indicating some near-term retracement.

“Nonetheless, we expect the index to hold at support levels of 1,790 (S1) and 1,765 (S2), close to its 100-day SMA, which has proven to be a fairly resilient support. Meanwhile, resistances can then be found at 1,825 (R1) and 1,865 (R2),” it said.