KUALA LUMPUR (June 4): The FBM KLCI pared some of its losses at mid-morning today as regional markets advanced on hopes of a solution to the Greek financial woes.
At 10.30am, the FBM KLCI was down 2.35 points to 1,746.82. The index had earlier slipped to a low of 1,739.92.
The top losers included DanaInfra Nasional Bhd, Y&C Corporation Bhd, Dutch Lady Milk Industries Bhd, British American Tobacco (M) Bhd, PPB Group Bhd, Petronas Dagangan Bhd, IOI Corporation Bhd, Boustead Holdings Bhd, KLCC Property Holdings Bhd and Telekom Malaysia Bhd.
The actives included Kinsteel Bhd, Connectcounty Holdings Bhd, Pasukhas Group Bhd, APFT Bhd and Perwaja Holdings Bhd.
The top gainers included United Plantations Bhd, Cycle & Carriage Bintang Bhd, Top Glove Corporation Bhd, Hong Leong Financial Group Bhd, Sarawak Oil Palms Bhd, Westports Holdings Bhd and Genting Bhd.
The euro continued riding high on Thursday thanks to a spike in euro zone debt yields, while Asian stocks rose on hopes that Greece could be inching closer to a deal that would save it from default, according to Reuters.
The European common currency rode the momentum gathered overnight when the European Central Bank, in line with recent data suggesting deflationary pressures were not as pronounced as feared, raised its inflation forecast for 2015, it said.
Hong Leong IB Research said the chart showed that selling pressure has waned and started to ricochet as “Positive Divergence” pattern on hourly chart spurs daily oscillators (MACD, RSI and Slow Stochastics) to hook up from oversold region, providing ammunition to its buying momentum.
Hence, the FBM KLCI was likely to stage a follow-through technical rebound today.
“However, the medium-term trend of CI still remains down given current subdued trading environment could persist as investors refrain from trading commitments amid uncertainties over the near-term market direction, amid lack of fresh catalysts and nagging domestic issues.
“For a resumption of uptrend, the FBM KLCI must swiftly recapture the 1,792 (downtrend line from all time high of 1,896).
“On the flipside, support is at 1,746 (61.8% FR) with next support areas at the 1,715–1,733 gap recorded on Dec 15,” it said.