KLCI pares gains, defends position above 1,700 level

-A +A

KUALA LUMPUR (Nov 2): The FBM KLCI pared some of its gains at mid-morning today, and stayed above the 1,700-point level ahead of the tabling of Budget 2019.

At 10am, the FBM KLCI was up 1.34 points to 1,708.26. The index had earlier risen to a high of 1,714.11.

Gainers led losers by 346 to 160, while 219 counters traded unchanged. Volume was 776.36 million shares valued at RM322.45 million.

The gainers included KESM Industries Bhd, United Plantations Bhd, Hong Leong Financial Group Bhd, Heineken Malaysia Bhd, Hong Leong Industries Bhd, Pentamaster Corp Bhd, Carlsberg Brewery Malaysia Bhd and PPB Group Bhd.

The actives included Vivocom International Holdings Bhd, AirAsia X Bhd, Seacera Group Bhd, PUC Bhd, Prestariang Bhd, Datasonic Group Bhd, Hubline Bhd and Key ASIC Bhd.

The losers included Nestle (M) Bhd, Enra Group Bhd and Malaysia-listed Hang Seng Index-linked put warrants.

Asian equity markets rose on Friday as China and the United States expressed optimism about resolving their bruising trade war, though a warning from tech giant Apple Inc on holiday sales amid emerging market weakness could weigh on technology shares, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.46%, adding to the previous session's strong gains. But that came after a sharp 10.3% dive in October, its worst month since August 2015, it said.

Kenanga IB Research said stocks in Asia mostly closed higher yesterday, tracking another rally on Wall Street, with Hong Kong and Shanghai leading the way, following a Chinese pledge to support the world's number two economy.

It said on the local front, trading was unexciting with the FBM KLCI closing marginally lower by 2.35 points (-0.14%) at 1,706.92.

"Market breadth remains positive with 434 gainers outnumbered 364 losers while 343 counters traded unchanged.

"We continue to believe the local index is likely to trade with a downside-bias to re-test the support levels at 1,700 (S1), no thanks to the still thin trading volume and weaknesses seen in momentum indicators.

"Should the index break below the aforementioned 1,700 (S1) level, the next support level can be identified at 1,658 (S2). Conversely, resistance levels are capped at 1,735 (R1) and 1,800 (R2)," it said.