KLCI reverses earlier loss, attempts technical rebound

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KUALA LUMPUR (Dec 10): The FBM KLCI reversed its earlier losses and clawed into positive territory at mid-morning on Wednesday.

At 10am, the local index rose 8.37 points to 1,746.47. It had earlier fallen to a low of 1,732.76.

The top gainers included British American Tobacco (M) Bhd, United Plantations Bhd, Tasek Corporation Bhd, Axiat Group Bhd, Tenaga Nasional Bhd, Cycle & Carriage Bhd, PPG Group Bhd, Berjaya Food Bhd, DiGi.Com Bhd and Public Bank Bhd.

Nexgram Holdings Bhd was the most actively traded counter with 16.6 million shares done. The stock was flat at 6,5 sen.

The other actives included SapuraKencana Petroleum Bhd, Jobstreet Corporation Bhd, Sumatec Resources Bhd, Nova MSC Bhd and Perisai Petroleum Teknologi Bhd.

The top losers include P.I.E. Industrial Bhd, Guiness Anchor Bhd, RHB Capital Bhd, Malaysia Airports Holdings Bhd, IJM Corporation Bhd, Tan Chong Motor Holdings Bhd, Hong Leong Bank Bhd and APM Automotive Holdings Bhd.

Regionally, oil prices were knocked again on Wednesday, with Asian shares and the dollar also pulling back as global growth concerns and political uncertainty in Greece prompting a flight to safety, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.4 percent, while Japan's Nikkei stock average was down more than 1 percent, it said.

Hong Leong IB Research said the FBM KLCI was likely to remain choppy and volatile in near term mainly due to the weak ringgit and lower crude oil price.

It said the mid-long term picture of the FBM KLCI remained bearish as teh index had penetrated below the neckline of Head & Shoulder (1770), suggesting further sell-down.

“We are looking at immediate support near 1733, followed by 1715 and 1700.

“However, yesterday’s Hammer candlestick in the region of oversold state may trigger technical rebound this week towards 1750, 1770 and 1800 psychological levels,” it said.