KLCI forges ahead, pushed up 1.47% by index-linked banks

KLCI forges ahead, pushed up 1.47% by index-linked banks
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KUALA LUMPUR (April 20): The FBM KLCI forged ahead on sustained momentum as gains at index-linked banking stocks pushed it 1.47% higher, against the backdrop of cautious regional markets.

At 10am, the FBM KLCI rose 21.04 points to 1,428.38.

Gainers outpaced losers by 555 to 147, while 305 counters traded unchanged. Volume was 1.41 billion shares valued at RM633.34 million.

The leading gainers included CIMB Group Holdings Bhd, Malayan Banking Bhd, Public Bank Bhd, AMMB Holdings Bhd, RHB Bank Bhd, while other consumer stocks included Heineken Malaysia Bhd, Fraser & Neave Holdings Bhd and Ajinomoto (M) Bhd.

The actives included Vortex Consolidated Bhd, AirAsia X Bhd, AirAsia Group Bhd, MCT Bhd, DGB Asia Bhd, Minetech Resources Bhd, Ekovest Bhd and Hubline Bhd.

The decliners included Concrete Engineering Products Bhd, Far East Corp Bhd, Teck Guan Perdana Bhd and Ideal United Bintang International Bhd.

Reuters said caution gripped Asian share markets on Monday on expectations a busy week of corporate earnings reports and economic data will drive home the damage done by the global virus lockdown, while US crude prices took an early spill.

Japan reported its exports fell almost 12% in March from a year earlier, with shipments to the US down over 16%. Early readings on April manufacturing globally are due on Thursday and are expected to show recession-like readings, said Reuters.

Hong Leong IB Research said in view of positive performance on Wall Street last week as investors brushed off concerns over coronavirus pandemic situation, buying interest may persist on the local exchange, forming an extended rebound on the FBM KLCI.

“However, based on the overbought technical readings on FBM KLCI, we think the upside could be limited around 1,419 and key index should form a consolidation phase between 1,370-1,419 levels.

“In the meantime, traders are advised to continue monitoring healthcare-related segment such as gloves, mask and sanitisers related stocks for trading opportunities,” it said.