KUALA LUMPUR (Feb 2): The main index at Bursa Malaysia got into consolidation mode in the morning trade session Tuesday and pared some of its gains at midday break, against the backdrop of firmer regional markets.

At 12.30pm, the FBM KLCI was up 12.07 points to 1,578.47. The index had earlier risen to a high of 1,585.18.

Losers overtook gainers by 541 to 527, while 422 counters traded unchanged. Trading volume was 3.97 billion shares valued at RM2.64 billion.

The gainers included Kuala Lumpur Kepong Bhd, Petronas Dagangan Bhd, Frontken Corp Bhd, Hengyuan Refining Company Bhd, Hartalega Holdings Bhd, Nestle (M) Bhd and Tasco Bhd.

The actively traded stocks included Iris Corp Bhd, Trive Property Group Bhd, EA Holdings Bhd, GPAS Holdings Bhd, AT Systematization Bhd and QES Group Bhd.

The decliners included Fraser & Neave Holdings Bhd, Menang Corp Bhd, Kossan Rubber Industries Bhd, Euro Holdings Bhd, DKSH Holdings (M) Bhd, Carlsberg Brewery Malaysia Bhd and Focus Point Holdings Bhd.

Reuters said Asian stock markets extended gains on Tuesday on increased optimism about stimulus packages and global economic recovery, while retail investors retreated from GameStop and their new-found interest in silver.

MSCI's gauge of Asia Pacific stocks outside Japan was up 1.25% mid-morning, building on Monday's rise. Hong Kong's Hang Seng Index and China's benchmark CSI300 Index opened 1.7% and 0.33% higher, respectively. Japan's Nikkei 225 gained 0.67%, it said.

Hong Leong IB Research said on the back of the alarming surge in domestic Covid-19 infections and the start of the February reporting season, KLCI is expected to continue its consolidation mode today, as investors await the details of MCO 2.0, which expires on Feb 4, and weigh on the downside risks to the economic and corporate earnings growth.

“Nevertheless, severe downside risks could be mitigated by the grossly oversold indicators (key supports: 1,534-1,563; resistances: 1,600-1,618), the availability of the vaccine coupled with supportive monetary conditions and fiscal initiatives.

“Given the potential for volatility, a balanced portfolio remains appropriate.

“Hence, we would adopt a more balanced approach in our top picks with a combination of recovery plays, defensives, value and sold down pandemic beneficiaries,” it said.