KLCI gains 0.64% as plantations, blue chips lift

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KUALA LUMPUR (Oct 29): The FBM KLCI rose 0.64% at the midday break on Wednesday as index-linked plantation stocks and select blue chips rose on bargain hunting activities, in tandem with the the uptrend at regional markets.

At 12.30pm, the FBM KLCI rose 11.94 points to 1,837.62.

The top gainers included KLK, HLFG, Batu Kawan, PPB, SPB, BAT, Tasek, Hong Leong Bank, CIMB, Petronas Dagangan, Petronas Gas and Genting.

The actives included Efficient, IFCA MSC, Sumatec, Sona Petroleum, YGL, Ni Hsin, Talam Transform, Century Software and PDZ.

The decliners included Nestle, United Plantations, UMS, Huat Lai, Metal Reclamation, Kotra, MISC, Timecom and Prostasco.

Regionally, Asian shares advanced to one-month highs on Wednesday, helped by Wall Street which gained on optimism over corporate earnings and prospects the U.S. Federal Reserve will reaffirm its willingness to wait longer before raising interest rates, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.7 percent, led by a 1.2 percent rise in South Korean shares while Japan's Nikkei share average rose 1.4 percent, it said.

Maybank IB head of retail research and chief chartist Lee Cheng Hooi in a note to clients Wednesday said the FBM KLCI rose 2.53 points to 1,825.68 yesterday, but the FBMEMAS and FBM100 closed lower by 22.06 points and 12.74 points.

He said that in terms of market breadth, the gainer-to-loser ratio was 285-to-528 while 274 counters were unchanged. 1.58 billion shares were traded valued at RM1.79 billion.

“We recommend a “Range Trading” stance for the index. The KLCI Nov Futures moved into a minor 0.32-point premium against the FBM KLCI.

“We expect some nibbling at the supports of 1,800 to 1,825, whilst heavy liquidation would be at the resistances of 1,827 and 1,837.

“The index is below the 50 and the 200 SMA with a “Dead Cross” and is very bearish in the medium to long term. In the shorter term, a price rebound may be consistent with the oversold chart conditions,” he said.