KLCI pares gains as regional markets fall

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KUALA LUMPUR (Oct 30): The FBM KLCI pared some of its gains at the midday break on Thursday as key regional markets fell, in tandem with teh overnight decline at Wall Street.

At 12.30pm, the FBM KLCI added 3.77 points to 1,843.32. The index had earlier risen to its intra morning high of 1,843.89.

The top gainers at noon included Press Metal, Nestle, DKSH, Allianz, Bat, Timecom, Gamuda, HCK and My E.G.

KTB was the most actively traded counterw ith 42.55 million shares done. The stcok rose 6.49% or 2.5 sen to 41 sen.

The other actives included YGL, Naim Indah Corp, IFCA MSC, Asia Bio, Dutaland, MEGB and Priceworth.

The decliners included Shell, Advance Packaging, OIB, Perduren, Top Glove, Asia Brands, Caring Pharmacy, KLK and Lii Hen.

Regionally, Asian stocks fell and the dollar surged to a three-week high versus the yen after the U.S. Federal Reserve ended its massive quantitative easing programme, as expected, but laced its economic assessment with a tinge of optimism, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6 percent, it said.

Maybank IB head of retail research and chief chartist Lee Cheng Hooi in a note to clients Thursday said the FBM KLCI rose 13.87 points to 1,839.55 yesterday and the FBMEMAS and FBM100 gained 82.22 points and 78.41 points respectively.

He said that in terms of market breadth, the gainer-to-loser ratio was 587-to-231 while 280 counters were unchanged, adding that 2.01 billion shares were traded, valued at RM2.11 billion.

“We recommend a “Buy on Dips” stance for the index. The KLCI Nov Futures moved into a larger 3.45-point premium against the FBM KLCI.

“We expect some buying at the supports of 1,815 to 1,838, whilst some profit-taking would be at the resistances of 1,840 and 1,860.

“The index is below the 50 and the 200 SMA with a “Dead Cross” and is bearish in the medium to long term. In the shorter term, a price rebound may be consistent with the oversold chart conditions,” he said.