KLCI reverses losses but sentiment remains lacklustre

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KUALA LUMPUR (April 15): The FBM KLCI reversed its losses at mid-morning but gains were limited as sentiment remained lacklustre after the International Monetary Fund said Malaysia’s growth is expected to slow markedly to 4.8% this year from 6% in 2014 (a downward revision of 0.4 percentage point) on weaker terms of trade.

Investors also stayed cautious at the local bourse in line with the hesitant start at most regional markets.

At 10.02am, the FBM KLCI was up 3.83 points to 1,843.44.

The top gainers included British American Tobacco (M) Bhd, Nestle (M) Bhd, Only World Group Holdings Bhd, Guiness Anchor Bhd, KLCC Property Holdings Bhd, Petronas Dagangan Bhd, Century Bond Bhd, IHH Healthcare Bhd, Tasek Corporation Bhd and Muhibbah Engineering Bhd.

The actively traded counters included Xinghe Holdings Bhd, Perisai Petroleum Teknologi Bhd, Globaltec Technology Bhd, Bumi Armada Bhd, Ingenuity Consolidated Bhd, Hovid Bhd and KNM Group Bhd.

The top losers included United Plantations Bhd, Hong Leong Financial Group Bhd, Asia Brands Bhd, Lafarge Malaysia Bhd, Hong Leong Bank Bhd, Sam Engineering Bhd, RHB Capital Bhd and Genting Bhd.

Asian share markets took a cautious stance on Wednesday ahead of an anxiously-awaited reading on China's growth pulse, while the dollar nursed losses after a disappointing reading on consumer spending nudged bond yields lower, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was all but flat, while Japan's Nikkei inched down 0.2 percent, it said.

Hong Leong IB Research said the FBM KLCI may engage in near term sideways consolidation to neutralise overbought position.

“However, as hourly indicators are in grossly oversold positions and following the formation of hammer candlestick yesterday, the FBM KLCI may find a near term support near 1830 level.

“Lower supports are 1821 (200-d SMA) and 1815 (61.8% FR and 30-d SMA). Stiff resistances remain at 1850, 1858 and 1878 levels,”it said.