KLCI rises 0.37% on positive sentiment

KLCI rises 0.37% on positive sentiment
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KUALA LUMPUR (Jan 14): The main index of Bursa Malaysia rose 0.37% in the mid-morning today as broader market sentiment was positive and select index-linked stocks lifted.

At 10am, the FBM KLCI was up six points at 1,642.69.

Gainers led losers by 498 to 387, while 357 counters traded unchanged. Trading volume was 1.61 billion shares valued at RM1.11 billion.

The gainers included Malaysian Pacific Industries Bhd, Press Metal Aluminium Holdings Bhd, Public Bank Bhd, UWC Bhd, Euro Holdings Bhd, Toyo Ventures Holdings Bhd, KESM Industries Bhd, Mi Technovation Bhd, KPower Bhd and Pentamaster Corp Bhd.

The actively traded stocks included Iris Corp Bhd, Kanger International Bhd, JCY International Bhd, Avillion Bhd, Melewar Industrial Group Bhd and Inix Technologies Holdings Bhd.

The decliners included Hartalega Holdings Bhd, Rapid Synergy Bhd, Fraser & Neave Holdings Bhd (F&N), Nestle (Malaysia) Bhd, Supermax Corp Bhd, TIME dotCom Bhd, Kossan Rubber Industries Bhd and Top Glove Corp Bhd.

Reuters said Asian equities made early trading gains today after a mixed session on Wall Street buoyed by expectations of a US stimulus package even as political events in Washington culminated in the impeachment of President Donald Trump.

US Treasury yields posted their first full-session decline in 2021 after rising for six straight sessions as investors eyed more spending by the incoming US administration.

The benchmark S&P 500 closed slightly higher, driven by rate-sensitive defensive sectors such as utilities and real estate, while economically sensitive cyclical sectors lagged, it said.

Inter-Pacific Research Sdn Bhd said Malaysian equities staged a strong rebound yesterday following clarity of the country’s state of emergency and movement control order (MCO) rules, reversing the sagging sentiments a few sessions earlier.

In its daily bulletin today, the research house said this hastened bargain-hunting activities that gained strength after some measure of political certainty was attained.

It said despite gainers overwhelming losers, market participation remained modest with many players still adopting a wait-and-see stance.

“While we expected Malaysian equities to rebound, it was much stronger than anticipated, which we think could have been overdone with much of the gains helped by the return of foreign buying.

“While this is encouraging after they were new sellers over the past few years, it is still too early to assume that their buying is sustainable given that Malaysian corporate earnings recovery is still uneven.

“As such, we think the KLCI is still susceptible to more near-term vagaries that may temper its recovery.

“However, we see the KLCI attempting to stay above the 1,600-1,620 level for the time being with modest gains that could be punctuated by bouts of quick profit-taking actions,” it said.

The research house said the immediate support is at 1,628 points, while the resistance levels are at 1,640 and 1,650 points respectively.

“In the broader market, conditions have improved markedly with easing political concerns, and this could still spur lower liners higher over the near term after their brief consolidation.

“Retail players are restarting their trading activities in anticipation of a firmer economic and corporate earnings performance later in the year when Covid-19 vaccines are more widely available to curb the pandemic,” it said.