KLCI pares gains on profit-taking consolidation, stays up in line with region

KLCI pares gains on profit-taking consolidation, stays up in line with region
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KUALA LUMPUR (Nov 23): The main index at Bursa Malaysia pared some of its gains at the midday break on profit-taking consolidation, but remained in the positive zone in line with its regional peers.

At 12.30pm, the FBM KLCI was up 1.29 points to 1,595.04. The index had earlier in the morning risen to a high of 1,599.63.

Gainers led losers by 389 to 345, while 776 counters traded unchanged. Trading volume was 4.98 billion shares valued at RM2.16 billion.

The top gainers included Petronas Dagangan Bhd, Supermax Corp Bhd, Malaysian Pacific Industries Bhd, PPB Group Bhd, Kelington Group Bhd, Carlsberg Brewery Malaysia Bhd, Hengyuan Refining Company Bhd, Dutch Lady Milk Industries Bhd and UWC Bhd.

The actively traded stocks included Metronic Global Bhd, Kanger International Bhd, AT Systematization Bhd, DGB Asia Bhd and Hiap Teck Venture Bhd.

The decliners included Press Metal Aluminium Holdings Bhd, Kotra Industries Bhd, Gets Global Bhd, Panasonic Manufacturing Malaysia Bhd, Fraser & Neave Holdings Bhd, Mega First Corp Bhd and PIE Industries Bhd.

Reuters said a broad gauge of Asian shares edged up to record highs on Monday morning as hopes for imminent coronavirus vaccines buoyed investor sentiment, but worries over the impact of economic lockdowns and uncertainty over US stimulus capped gains.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.38%, pushing past a previous record high touched on Friday, it said.

Hong Leong IB Research said after a 141-point surge from 1,452, KLCI is ripe for further profit-taking consolidation, given the overbought momentum and concerns over the huge amount of economic uncertainty created by Covid-19 despite vaccine optimism, expectations of weaker 4Q20 economy and corporate earnings in Malaysia (post-CMCO 2.0), the peak of the 3Q20 results season, and the Budget 2021 approval on Nov 26.

“Sentiment is also likely to be dampened by EPF’s CEO statement that the fund will have to liquidate its assets and rebalance its portfolio to make billions of ringgit available to contributors in need of funds to lessen the financial turmoil caused by the Covid-19 pandemic.

“Key supports are pegged at 1,584-1,555-1,535 levels whilst resistances are situated at 1,600-1,618-1,640 levels,” it said.