KLCI pares gains, stays up 1% in line with positive region, Wall Street surge

KLCI pares gains, stays up 1% in line with positive region, Wall Street surge
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KUALA LUMPUR (April 7): The FBM KLCI pared some of its gains at mid-morning Tuesday but was up 1%, in line with the regional gains and the overnight surge at Wall Street.

At 10am, the FBM KLCI was up 14.52 points to 1,356.21. The index had earlier risen to a high of 1,360.09.

Gainers led losers by 642 to 111, while 233 counters traded unchanged. Trading volume was 1.93 billion shares valued at RM736.68 million.

The gainers included Panasonic Manufacturing Malaysia Bhd, Dutch Lady Milk Industries Bhd, Ajinomoto (M) Bhd, KESM Industries Bhd, Apollo Food Holdings Bhd, Hong Leong Financial Group Bhd, Batu Kawan Bhd, Petronas Gas Bhd, British American Tobacco (M) Bhd and Malayan Banking Bhd.

The actives included Lambo Group Bhd, Sapura Energy Bhd, Hibiscus Petroleum Bhd, Minetech Resources Bhd, Bumi Armada Bhd, Vortex Consolidated Bhd, Velesto Energy Bhd, Ekovest Bhd and My EG Services Bhd.

The decliners included Bursa Malaysia-listed Hang Seng Index-linked put warrants.

Bloomberg reported that Asian stocks looked set to build on a US rally after the reported death tolls in some of the world’s coronavirus hot spots continued to show signs of easing. The yen maintained losses and Treasuries fell.

S&P 500 futures dipped at the open in Asia Tuesday after the index finished up 7% and closed at its highest since March 13. Futures in Japan pointed to a strong open with Prime Minister Shinzo Abe expected to announce a month-long state of emergency as soon as Tuesday and details of a record stimulus package to combat the spread of the virus. Australian and Hong Kong futures also rose, it said.

Hong Leong IB Research said in the wake of the overnight Dow’s 7.7% surge coupled with the second government stimulus measures to spur domestic ailing SMEs, KLCI could still advance further to retest 1,353 (March 26 high) and 1,364 (38.2% FR) territory.

“Nevertheless, we reiterate 'Sell Into Rally' as we do not expect the formidable hurdles at 1,369-1,419 gap (March 16) to be filled in the near term, given the pandemic’s toll on the global economy although the latest fatality figures provided some relief to the onslaught of Covid-19.

“Conversely, a decisive breakdown below key support near 1,329 (10D SMA) will accelerate further selling spree towards 1,300 levels,” it said.