KLCI pares gains but poised for another day of hefty trading volume

KLCI pares gains but poised for another day of hefty trading volume
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KUALA LUMPUR (May 19): The FBM KLCI pared some of its gains at mid-morning as index-linked glovemakers succumbed to profit taking but Bursa Malaysia Securities looked poised to notch up another heavy trading day as trading volume remained elevated against the backdrop of firm crude oil prices.

Yesterday, trade volume across Bursa Malaysia rose to another record high in less than a week at 11.21 billion securities.

Meanwhile, Brent crude climbed US$0.85, or 2.4%, to US$35.66 a barrel by 0033 GMT, after touching its highest since April 9.

US West Texas Intermediate crude was up US$1.30, or 4.1%, at US$33.12 a barrel, after hitting its highest since March 16.

At 10am, the FBM KLCI was up 12.69 points to 1,422.85. The index had earlier risen to a high of 1,423.89.

Gainers led losers by 400 to 366, while 340 counters traded unchanged. Trading volume was 3.44 billion shares valued at RM1.31 billion.

The top gainers included Kuala Lumpur Kepong Bhd, Fraser & Neave Holdings Bhd, Dutch Lady Milk Industries Bhd, Hong Leong Financial Group Bhd, Public Bank Bhd, Genting Plantations Bhd, Petronas Dagangan Bhd and Teck Guan Perdana Bhd.

The actives included Velesto Energy Bhd, Icon Offshore Bhd, KNM Group Bhd, Sapura Energy Bhd, Ekovest Bhd, Bumi Armada Bhd, Eduspec Holdings Bhd, Hibiscus Petroleum Bhd and Green Packet Bhd.

The decliners included Nestle (M) Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Top Glove Corp Bhd and Supermax Corp Bhd.

Bloomberg said Asian stocks opened higher Tuesday, spurred by a surge on Wall Street, after early results for an experimental vaccine sparked speculation economies could snap back quickly.

Hong Leong IB Research said in the wake of the 3.9% rally on Dow and 7.1% surge on Brent oil prices overnight amid vaccine progress and stimulus hopes, KLCI could rise further to retest its envisaged 1,418/1,429/1,447 levels in the short term, as daily and weekly technicals are on the mend.

“Nevertheless, profit taking consolidation may be capped further upside as the market is digesting recent historic trading volumes and ahead of the extended Hari Raya holidays (Bursa will be closed on May 25-26) coupled with [the] ongoing results season.

“Meanwhile, following the gradual reopening of global economies and easing lockdowns, battered tourism-related stocks could witness some buying interests.

“Also, building materials stocks may gather more trading momentum following the ECRL and HSR revival news,” it said.