KLCI pares gains on mild profit-taking, manages to hold above 1,400 level

KLCI pares gains on mild profit-taking, manages to hold above 1,400 level
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KUALA LUMPUR (May 15): The FBM KLCI pared some of its gains at mid-morning as some mild profit-taking emerged, but managed to hold its position above the 1,400-point level.

At 10am, the FBM KLCI was up 5.37 points to 1,402.62. The index had earlier risen to a high of 1,404.10.

Gainers led losers by 434 to 171, while 333 counters traded unchanged. Trading volume was 2.25 billion shares valued at RM781.97 million.

The top gainers included Top Glove Corp Bhd, SAM Engineering & Equipment (M) Bhd, Ajinomoto (M) Bhd, Carlsberg Brewery Malaysia Bhd, MISC Bhd, Kossan Rubber Industries Bhd, PPB Group Bhd, Hartalega Holdings Bhd and Tenaga Nasional Bhd.

The actives included DGB Asia Bhd, XOX Bhd, Velesto Energy Bhd, JAG Bhd, Hibiscus Petroleum Bhd, KNM Group Bhd, Borneo Oil Bhd and Key Alliance Group Bhd.

The decliners included Nestle (M) Bhd, Keck Seng (M) Bhd, United Plantations Bhd, Sime Darby Plantation Bhd and Scientex Bhd.

Bloomberg said Asian stocks opened higher on Friday as investors awaited data that may show China’s post-lockdown economic recovery is picking up steam.

Treasuries kept gains, it said.

Hong Leong IB Research said although the remarkable overnight comeback by Dow and a rally in oil prices could spur local sentiment today to retest the 1,400-1,418 zones, the KLCI could experience some degree of profit-taking (with key short term supports at 1,350-1,370) as the market is digesting this week's historic trading volumes.

“On local stocks, we believe focus would remain on the Covid-19 winners such as gloves and healthcare-related stocks but recent upmove has sent these stocks into extremely overbought levels and elevated valuations, and hence profit taking pullback could cap further gains,” it said.