KUALA LUMPUR (April 23): The FBM KLCI struggled to breach the 1,400-point threshold this morning despite the generally positive vibes at most regional markets.
At 10am, the FBM KLCI was up 8.82 points to 1,390.71. The index had earlier risen to a high of 1,395.34.
Gainers led losers by 466 to 138, while 280 counters traded unchanged. Trading volume was 1.46 billion shares valued at RM605.85 million.
The top gainers included Dutch Lady Milk Industries Bhd, Nestle (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Fraser & Neave Holdings Bhd, United Plantations Bhd, Public Bank Bhd, Malaysian Pacific Industries Bhd and Petronas Gas Bhd.
The actives included Vortex Consolidated Bhd, MCT Bhd, Velesto Energy Bhd, Luxchem Corp Bhd, Careplus Group Bhd, Hibiscus Petroleum Bhd, Nexgram Holdings Bhd and Solarvest Holdings Bhd.
The decliners included Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd, Kuala Lumpur Kepong Bhd and Kotra Industries Bhd.
Bloomberg said Asian stocks edged higher, tracking gains on Wall Street, as investors took some comfort from earnings reports and signs the coronavirus outbreak is easing. Oil rebounded.
Futures in New York rose around 2% to near US$14 a barrel after jumping Wednesday. Already inundated with bearish signals, the market shrugged off data showing US crude stockpiles rising to a three-year high and petroleum demand at a record low, it said.
Shares saw modest gains in Tokyo, Seoul and Sydney. Futures on the S&P 500 Index dipped after the gauge rebounded from its worst sell-off in three weeks amid quarterly results. Treasury Secretary Steven Mnuchin said he anticipates most of the economy will restart by the end of August. House lawmakers on Thursday are set to pass another round of aid. Treasuries were little changed and the US dollar edged higher, it said.
Hong Leong IB Research said tracking overnight rebound on both the Dow and crude oil prices, KLCI may regain some losing grounds to retest the immediate 1,402 (50D SMA) resistance.
“A successful breakout above SMA50 should lift index from consolidation mode towards 1,412-1,429 territories.
“Nevertheless, we still favour selling on strength as we roll into May as the economic reality should start to sink in soon due to concerns about weaker corporate earnings and relatively expensive valuations coupled with potential extension after the MCO-3 ending on April 28,” it said.