Friday 29 Mar 2024
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KUALA LUMPUR (Aug 4): The FBM KLCI pared some of its gains at the midday break today as local sentiment remained jittery amid the reporting season for local listed firms.

At 12.30pm, the FBM KLCI was up 3.47 points to 1,651.97. The index had earlier risen to its intra-morning high of 1,654.40.

Gainers led losers by 332 to 296, while 343 counters traded unchanged. Volume was 1.09 billion shares valued at RM637.51 million.

The top gainers included Panasonic Manufacturing Malaysia Bhd, Lay Hong Bhd, MSM Malaysia Holdings Bhd, Tasek Corporation Bhd, Mesiniaga Bhd, Hong Leong Industries Bhd, British American Tobacco (Malaysia) Bhd, MNRB Holdings Bhd, Lafarge Malaysia Bhd, DRB-Hicom Bhd, United Malacca Bhd and Heineken Malaysia Bhd.

The actively traded stocks included Dagang NexChange Bhd, APFT Bhd, DRB-Hicom, M3 Technologies (Asia) Bhd, Borneo Oil Bhd and Felda Global Ventures Holdings Bhd.

The top losers included Fraser & Neave Holdings Bhd, Ajinomoto (Malaysia) Bhd, Apex Healthcare Bhd, Versatile Creative Bhd, DanaInfra Nasional Bhd, Muda Holdings Bhd and Petronas Dagangan Bhd.

The British pound edged up on Thursday as investors counted on the Bank of England (BoE) to cut interest rates to a record low, while a rebound in oil prices from four-month lows lifted Asian stocks, according to Reuters.

The sterling rose 0.1% to US$1.3340, keeping some distance from its three-decade low of US$1.2798 hit almost a month ago, although currency markets may be somewhat ambivalent over how to react to the BoE decision — buy sterling if the BoE cuts, sell if it doesn't, or vice versa, it said.

Kenanga IB Research said the persistent slump of the ringgit against major global currencies (which dropped against the greenback to RM4.048/USD yesterday) and volatile crude oil prices dragged down the FBM KLCI yesterday as the key index tumbled 11.73 points (0.7%) to close at 1,648.50.

The research house said the technical outlook has turned ungainly after breaking down from its consolidation support level of 1,650 (R1) on high trading volume.

It said the bearish outlook is further reinforced by the hook-down in RSI and Stochastic indicators which are reflecting the heavier selling pressure in the local bourse.

"With the lack of positive news flow, weakening of the ringgit and crude oil prices, and rising concern over the health of global economy, the FBM KLCI could face further downside pressure from here on.

"We expect negative retracement towards 1,643 (S1) and possibly to its multi-month low support level of 1,620 (S2) next in the near term.

"A swift high volume countermove to its new resistance level of 1,650 (R1) is needed to negate the bearish-bias outlook, which could offer a slight opportunity to climb further up towards 1,674 (R2)," it said.

 

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