KLCI pares gains but hovers above 1,700 level

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KUALA LUMPUR (Oct 24): The FBM KLCI pared some of its gains but managed to hover above the 1,700-point level at mid-morning today.

At 10am, the FBM KLCI was up 3.09 points to 1,700.69. The index had earlier risen to a high of 1,706.18.

Gainers trailed losers by 204 to 252, while 248 counters traded unchanged. Volume was 559.69 million shares valued at RM293.26 million.

The top gainers included British American Tobacco (M) Bhd, Top Glove Corp Bhd, Heineken Malaysia Bhd, Hengyuan Refining Company Bhd, Tenaga Nasional Bhd, Hong Leong Bank Bhd, UMW Holdings Bhd, Petron Malaysia Refining & Marketing Bhd and Muhibbah Engineering (M) Bhd.

The actives included Prestariang Bhd, Borneo Oil Bhd, Pesona Metro Holdings Bhd, Sapura Energy Bhd, Hibiscus Petroleum Bhd, Iris Corp Bhd and Hubline Bhd.

The decliners included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Panasonic Manufacturing Malaysia Bhd, Allianz Malaysia Bhd, Serba Dinamik Holdings Bhd, Time dotCom Bhd, Globetronics Technology Bhd, Ajinomoto (M) Bhd and LPI Capital Bhd.

Asian stocks edged up on Wednesday as a late round of buying helped Wall Street indexes pare most of their earlier panic-driven losses, although crude oil struggled near two-month lows after Saudi Arabia flagged possible supply increases, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% following a decline of more than 2% the previous day, it said.

Kenanga IB Research said regional stocks fell broadly yesterday as geopolitical tensions and uncertainty about near-term outlook for the global economy forced investors to indulge in heavy selling in stocks from across various sectors.

It said the local benchmark index dropped 24.87 points, or 1.44%, to close at 1,697.60, in tandem with the negative market breadth where 727 bears outnumbered 170 bulls, while 330 counters were unchanged.

"Technically, the outlook is increasingly bearish as the index breached below 1,700 psychological support level to signify continuation of down trending at least in the short term.

"With key momentum indicators still in the negative territory, support levels are identified at 1,658 (S1) and 1,614 (S2).

"Should market sentiment becomes better, key levels of resistance to look at are 1,735 (R1) and 1,760 (R2)," it said.