KLCI gains 0.83% on bargain hunting in line with regional advance

KLCI gains 0.83% on bargain hunting in line with regional advance
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KUALA LUMPUR (Feb 25): The main index at Bursa Malaysia rose 0.83% at mid-morning Thursday on bargain hunting, tracking regional gains.

At 10am, the FBM KLCI was up 12.99 points to 1,570.54.

Market breadth was positive with 611 gainers and 264 losers, while 390 counters traded unchanged. Trading volume was 2.98 billion shares valued at RM1.22 billion.

The gainers included Malaysian Pacific Industries Bhd, ViTrox Corp Bhd, Nestle (M) Bhd, Press Metal Aluminium Holdings Bhd, Uchi Technologies Bhd, Euro Holdings Bhd, Hong Leong Financial Group Bhd, D&O Green Technologies Bhd and Aeon Credit Service (M) Bhd.

The actively traded stocks included Permaju Industries Bhd, Fintec Global Bhd, XOX Bhd, YKGI Holdings Bhd, Velesto Energy Bhd, Metronic Global Bhd and Alam Maritim Resources Bhd.

The decliners included Pharmaniaga Bhd, Ajinomoto (M) Bhd, KESM Industries Bhd, Milux Holdings Bhd, Heineken Malaysia Bhd, Elsoft Research Bhd, Bursa Malaysia Bhd and Dutch Lady Milk Industries Bhd.

Reuters said Asian stocks perked up on Thursday after US Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low, calming market fears that higher inflation might prompt the central bank to tighten the monetary spigot.

"The dovish influence from the Fed is going to continue to resonate over in Asia. That's really good for emerging market assets when we've got a really good impulse from the Fed," said Stephen Innes, chief global markets strategist at Axi, it said.

Inter-Pacific Research Sdn Bhd said it was yet another dour day on Bursa Malaysia as stocks continue to consolidate with the selling/profit-taking spree becoming more pronounced as losing stocks overwhelmed gainers by a wide margin yesterday.

In its daily bulletin, the research house said market sentiments took a hit with concerns over potentially tighter monetary and fiscal measures ahead causing consternation among local market players.

It said glovemaker stocks remain among the big losers for the day due to their potentially weaker prospects ahead with the vaccine availability.

“Following the FBM KLCI’s incessant falls, the near-term outlook remains insipid and there appears to be more downside bias on the horizon.

“Recent attempts to break the downward spell has been met by renewed selling, particularly by foreign players, that has kept the key index firmly in red.

“While there is little to suggest this trend could change, we think that a rebound is already due following the recent weakness that has left the FBM KLCI oversold,” it said.

The research house said as it is, the key index is nearing the psychological 1,550 level which should provide firmer support and could also allow it to break its downward spell.

“Nevertheless, the market’s rejuvenation is still uncertain at this juncture, given that the Employees’ Provident Fund could still be looking to trim some of the shareholding to meet its i-Sinar payouts over the near-to-medium term.

“Below 1,550, the other support is at 1,540, while the hurdles are pegged at the 1,570-1,580 levels,” it said.