KLCI rises 0.38% to cross 1,500 level ahead of stimulus package announcement

KLCI rises 0.38% to cross 1,500 level ahead of stimulus package announcement
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KUALA LUMPUR (Feb 27): The FBM KLCI rose 0.38% at mid-morning today and regained the 1,500 level ahead of the stimulus package that will be announced later this afternoon by interim Prime Minister Tun Dr Mahathir Mohamad.

Dr Mahathir in a tweet yesterday said the stimulus package announcement would help restore investors’ confidence in the market, which has been under pressure recently due to uncertainties in the local political landscape as well as the Covid-19 outbreak.

At 10am, the FBM KLCI rose 5.76 points to 1,500.95.

However, investor sentiment appeared cautious with 327 stocks declining and 240 advancing, while 276 counters traded unchanged. Volume was 845.28 million shares valued at RM388.94 million.

The top gainers included Panasonic Manufacturing Malaysia Bhd, Public Bank Bhd, Hong Leong Bank Bhd, Hap Seng Consolidated Bhd, CI Holdings Bhd, PPB Group Bhd, Datasonic Group Bhd and Amway (M) Holdings Bhd.

The actives included Avillion Bhd, Sapura Energy Bhd, Powerwell Holdings Bhd, XOX Bhd, Priceworth International Bhd and Eduspec Holdings Bhd.

The decliners included Carlsberg Brewery Malaysia Bhd, Ayer Holdings Bhd, Ajinomoto (M) Bhd, Nestle (M) Bhd, Heineken Malaysia Bhd, Fraser & Neave Holdings Bhd, MBM Resources Bhd, Teck Guan Perdana Bhd and Petronas Gas Bhd.

Reuters said oil and Asian share markets slipped on Thursday, struggling to find a footing as the rapid global spread of the coronavirus left investors on edge and seeking safety in gold and bonds.

Most new virus cases are now being reported outside China — the origin of the outbreak — with South Korea, Italy and Iran emerging as new epicentres, it said.

Kenanga IB Research said Asian stocks were mostly down yesterday as sentiment continued to be dampened by the worsening Covid-19 pandemic fears.

It said the FBM KLCI declined by 5.69 points, or 0.38%, to finish at 1,495.19 yesterday.

“Chart-wise, the FBM KLCI index remained below the 20-day SMA.

“Coupled with the bearish crossover signal from MACD, we expect the index to remain under pressure ahead.

“Our support levels are at 1,470 (S1) and 1,430 (S2) while its overhead resistance can be identified at 1,500 (R1) and 1,550 (R2),” it said.