KLCI rebounds on mild bargain hunting

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KUALA LUMPUR (Aug 21): The FBM KLCI rebounded at the midday break today on some mild bargain hunting on oversold local stocks despite the slip at most regional markets.

At 12.30pm, the FBM KLCI was up 4.93 points to 1,582.34. The index had earlier slipped to its intra-morning low of 1,557.01.

However, the broader market sentiment remained tepid with losers outpacing gainers by 445 to 247, while 289 counters trade unchanged. Volume was 1.01 billion shares valued at RM907.29 million.

The gainers included Petronas Dagangan Bhd, Genting Plantations Bhd, Hong Leong Bank Bhd, Top Glove Corporation Bhd, UEM Edgenta Bhd, British American Tobacco (M) Bhd, IHH Healthcare Bhd, Lafarge Malaysia Bhd, Maxis Bhd, Tenaga Nasional Bhd and UMW Holdings Bhd.

The actively traded stocks included AirAsia Bhd, SapuraKencana  Petroleum Bhd, Sumatec Resources Bhd, Tiger Synergy Bhd. Nexgram Holdings Bhd, Talam Transform Bhd, DiGi.Com Bhd and Frontken Corporation Bhd.

The losers meanwhile included Dutch Lady Milk Industries Bhd, Selangor Properties Bhd, Pharmaniaga Holdings Bhd, Oriental Food Industries Bhd, Public Bank Bhd, Batu Kawan Bhd, GD Express Carrier Bhd, Nestle (M) Bhd and Hartalega Holdings Bhd.

Global stocks tumbled on Friday after a survey showed Chinese factories contracted at their fastest pace since the depth of the global financial crisis in 2009, sending investors scurrying to the safety of bonds and gold, according to Reuters.

Oil prices and emerging market assets also took a hammering, as fears of a China-led deceleration in global growth gripped markets, it said.

AffinHwang Capital Research said the downward trend was expected to continue, and that volatility in currency and commoidity markets remains.

It said domestic economic news positive hence may cushion downside risk.

“Technically, market breadth and volumes remain weak while the FBM KLCI continue to trade within the oversold level.  

“FBM KLCI’s next support range is 1,530-1,500. But the index may rebound anytime soon,” it said.