KLCI reverses loss, bargain hunting lifts

KLCI reverses loss, bargain hunting lifts

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KUALA LUMPUR (April 27): Bargain hunting actives lifted the FBM KLCI at mid-morning, reversing its earlier losses.

At 10am, the FBM KLCI rose 0.33 points to 1,692.83.

The gainers included Dutch Lady Milk Industries Bhd, Ajinomoto (Malaysia) Bhd, Malaysian Pacific Industries Bhd, LPI Capital Bhd, PPB Group Bhd, Scientex Bhd, Aeon Credit Service (M) Bhd, AirAsia Bhd and MNRB Holdings Bhd.

The actives included AirAsia X Bhd, AirAsia, Hiap Huat Holdings Bhd, Vivocom Intl Holdings Bhd, Bumi Armada Bhd, Globetronics Technology Bhd and Sumatec Resources Bhd.

The losers included British American Tobacco (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Batu Kawan Bhd, Muda Holdings Bhd, TIME dotCom Bhd, Public Bank Bhd, Kuala Lumpur Kepong Bhd and Lafarge Malaysia Bhd.

Asian stocks inched up on Wednesday, reflecting hopes that upcoming US and Japanese central bank policy meetings could benefit risk assets, while crude oil prices hovered near 2016 highs, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1%, it said.

Hong Leong IB Research (HLIB) said yesterday's sharp drop in the FBM KLCI came in out of HLIB's weekly expected range of 1,700–1,730, due to 1MDB default.

"The KLCI outlook for the remaining trading day of the week is expected to turn more cautious and choppier after a long black marubozu candlestick penetrated below psychological level of 1,700 amid falling oscillators and volume.

"Coupled with the old saying 'Sell in May and Go Away' adage, we expect the local benchmark index to trend lower toward our renewed weekly projected trading range of between 1,670 and 1,710.

"On the other hand, strong rebound in oil prices overnight could trigger a relief rally in FBM KLCI today. Hence, we are of the view that aggressive traders may play catch-up on O&G (oil and gas) counters for trading purposes," it said.