KLCI rebounds but gains limited by lack of fresh catalysts

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KUALA LUMPUR (Nov 18): The FBM KLCI staged a mild rebound at the midday break on Tuesday, but gains remained limited on lack of fresh catalysts with the index struggling to breach the 1,830 resistance level.

At 12.30pm, the FBM KLCI added 4.55 points to 1,811.03.

The top gainers included British American Tobacco (M) Bhd, Nestle (M) Bhd, DiGi.Com Bhd, Tenaga Nasional Bhd, Deleum Bhd, Kwantas Corporation Bhd, Kuala Lumpur Kepong Bhd, Kian Joo CN Factoy Bhd and Telekom Malaysia Bhd.

The actively traded counters included Sumatec Resources Bhd, PerisaI Petroleum Teknologi Bhd, IFCA MSC Bhd, Technodex Bhd, AirAsia X Bhd, and Berjaya Corportation Bhd.

The decliners included Genting Plantations Bhd, Asia File Corporation Bhd, IOI Corporation Bhd and Tune Ins Holdings Bhd.

Regionally, Japanese shares led a tentative recovery in Asian markets on Tuesday, drawing some support from two U.S. blockbuster acquisitions and anticipation of more European monetary stimulus, according to Reuters.

A day after shock data showing Japan slipping into recession had rattled financial markets, Japan's Nikkei rose 1.7 percent, erasing about a half of Monday's 3.0 percent fall, it said.

JF Apex Securities Research said the US market was little changed yesterday with S&P 500 registering another record close of the year whilst European shares clinched higher after ECB President Mario Draghi reiterated he was willing to do more, which entails bond purchases, to stimulate Euro zone economy if necessary.

“The FBM KLCI lost 7.31 points or 0.40% yesterday to settle at 1806.48 points.

“The benchmark index is expected to poise for a rebound with some bargain hunting activities but still struggling to breach our immediate resistance of 1830 points due to overall weak market sentiment and lack of fresh leads,” it said.