KLCI pares gains but rises 0.57% as blue chips lift

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KUALA LUMPUR (Apr 7): The FBM KLCI pared some of its gains at the midday break today but still was up 0.57% lifted by select blue chips.

At 12.30pm, the local index was up 10.51 points to 1,853.45. The index had earlier risen to its intra-morning high of 1,856.46.

Gainers led losers by 404 to 285, while 334 counters traded unchanged. Volume was 1.11 billion shares valued at RM956.98 million.

The top gainers included Petronas Dagangan Bhd, MISC Bhd, Hong Leong Bank Bhd, Batu Kawan Bhd, British American Tobacco (M) Bhd, Aeon Credit Services (M) Bhd, Amway (M) Holdings Bhd, Public Bank Bhd, Kuala Lumpur Kepong Bhd and Genting Bhd.

The actively traded stocks included Ingenco Consolidated Bhd, Takaso Resources Bhd, Tiger Synergy Bhd, Sumatec Resources Bhd, Perisai Petroleum Teknologi Bhd, Nova MSC Bhd and APFT Bhd.

The decliners included Hibiscum Petroleum Bhd, Adventa Bhd, Tasek Corporation Bhd, LPI Capital Bhd, Malaysian Pacific Industries Bhd and Prestariang Bhd.

Maybank IB head of retail research and chief chartist Lee Cheng Hooi in a note to clients today said the FBM KLCI advanced 8.42 points to 1,842.94 yesterday, while the FBMEMAS and FBM100 also closed higher by 41.91 points and 42.28 points, respectively.

In terms of market breadth, he said the gainer-to-loser ratio was 392-to-380 while 342 counters were unchanged, adding that a total of 1.99 billion shares were traded valued at RM1.69 billion.

Lee said major Asian indices fell after data showed the weakest US employment growth in more than a year, sending the JPY higher and spurred declines in the nation’s exporters.

“We recommend a 'Buy on Dips' stance for the index. The KLCI Apr Futures moved into a 6.06-point premium against the FBM KLCI. We expect some buying at the supports of 1,823 to 1,842, whilst liquidation activities may cap rebounds at the resistances of 1,844 and 1,858.

“The index was volatile after selling emerged in Nov and it plunged to a fresh low of 1,671.82 on Dec 17, 2014. The rebound from the 1,671.82 low will persist as buying interest remains strong. Buy on dips at the supports of 1,823 and 1,842 as the FBM KLCI is expected to trade with upward bias, toward its stipulated resistance areas above,” he said.