Friday 29 Mar 2024
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KUALA LUMPUR (Feb 26): The FBM KLCI erased its earlier losses today and rose above its psychological 1,500 level at the midday break.

However, the broader market sentiment remained tepid as losers led gainers after the FBM KLCI ended the world’s longest bull run on Feb 24, when it dropped 2.69% to close at 1,490.06 points and turned bearish.

At 12.30pm, the FBM KLCI rose 4.85 points to 1,505.73. The index had earlier fallen to its intra-morning low of 1,485.24.

Losers led gainers by 340 to 229, while 557 counters traded unchanged. Volume was 1.86 billion shares valued at RM1.25 billion.

The top gainers included MISC Bhd, British American Tobacco (M) Bhd, Ornapaper Bhd, Tenaga Nasional Bhd, Petronas Gas Bhd, Mega First Corp Bhd, UEM Edgenta Bhd and KKB Engineering Bhd.

The actives included XOX Bhd, Sapura Energy Bhd, Powerwell Holdings Bhd, Avillion Bhd, Radiant Globaltech Bhd, JCY International Bhd and JAG Bhd.

The decliners included Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd, Dutch Lady Milk Industries Bhd, Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Hap Seng Consolidated Bhd, Malaysian Pacific Industries Bhd, Genting Plantations Bhd and Time Dotcom Bhd.

Bloomberg said Asian traders prepared for more severe market moves on Wednesday after heightened concern about the spreading coronavirus triggered a slide in US stocks and Treasury yields. US stock futures opened modestly higher following Tuesday’s tumble.

Fears grew that the spread of the deadly virus into Europe may eventually cross the Atlantic, with the US Centers for Disease Control and Prevention warning Americans to prepare for a coronavirus outbreak at home. The 10-year US Treasury yield fell to a record low of 1.3055% as investors sought shelter from the virus’s impact on the outlook for growth. Futures on the S&P 500 Index edged up after a 3% slump in the gauge of US shares brought its losses to 7.6% over the past four days. Australian bonds climbed as shares retreated, with equity futures pointing lower in Japan and Hong Kong, it said.

Affin Hwang Capital Research said the FBM KLCI gained 10.82 points or 0.7% to close at 1,500.88 on Tuesday.

“The index rebounded in yesterday’s session following the huge drop seen in the previous one, sparked by political turmoil in the country. Price managed to close just above the 1,500 level, which is deemed as a key psychological level.

“Nonetheless, bias remains firmly towards the downside supported by several technical factors: 1) Shorter-period EMAs trading below the longer-period ones — strong downward momentum, 2) Key technical indicators, namely MACD, RSI & Stochastic continue to trade in bearish territories, showing weakness in price, 3) Price action indicates that downtrend firmly intact with price registering lower highs and lower lows consistently.

“Reiterate immediate key support range around the 1,375-1,400 level,” it said.

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