Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Aug 8): The FBM KLCI pared some of its gains at the midday break today, as investors sold down shares in IOI Corporation Bhd and Genting Bhd.

At 12.30pm, the FBM KLCI was up 1.76 points to 1,665.80. The index had earlier risen to 1,669.19.

Gainers led losers by 360 to 333, while 341 counters traded unchanged. Volume was 1.53 billion shares valued at RM749.62 million.

The top gainers included KESM Industries Bhd, Carlsberg Brewery Malaysia Bhd, MNRB Holdings Bhd, Kuala Lumpur Kepong Bhd, Malaysia Smelting Corporation Bhd, Hong Leong Financial Group Bhd, DRB-Hicom Bhd, British American Tobacco (Malaysia) Bhd and Tenaga Nasional Bhd.

The actives included UEM Sunrise Bhd, Malaysia Building Society Bhd, Hubline Bhd, TH Heavy Engineering Bhd, Borneo Oil Bhd and Dagang NeXchange Bhd.

The decliners included Panasonic Manufacturing Malaysia Bhd, Fraser & Neave Holdings Bhd, Batu Kawan Bhd, Pintaras Jaya Bhd, Lay Hong Bhd, PPB Group Bhd, Tasek Corporation Bhd, IOI Corp and Genting.

Investors flocked to higher-yielding assets on Monday after strong US jobs data on Friday (Aug 5) lifted confidence — driving up Asian stocks and the Australian dollar, according to Reuters.

Although the strong US data dampened the safe-haven appeal of government debt with Japanese 10-year bond futures tanking in early trade, futures markets were only pricing in a US rate hike only in 2017 as other major central banks looked set to add more stimulus in the coming weeks, it said.

Kenanga IB Research said despite closing the week on a higher note, the FBM KLCI's gains were very much kept in check, underpinned by the volatile crude oil prices, weakening ringgit and uncertain US economic data outcome.

Nonetheless, it said the stronger-than-expected US payroll data is expected to inspire domestic sentiment and increase investors' risk appetite this week.

On the technical front, the local bourse has staged a rebound from its consolidation zone support level of 1,650 on the back of stronger trading volume, according to the research house.

"Uptick in key momentum indicators [is] also suggesting that the bulls are returning to the scene.

"Barring any further weakening of oil prices and ringgit, the FBM KLCI could be poised for an upside-bias trading range within 1,643–1,674 this week.

"Overhead resistance is capped at 1,674 (R1) and 1,680 (R2), while supports are pegged at 1,650 (S1) and 1,643 (S2)," it said.

 

      Print
      Text Size
      Share