KLCI rises 0.43%, profit taking likely to cap gains

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KUALA LUMPUR (Apr 6): The FBM KLCI rose 0.43% at the midday break today in line with the uptrend at most regional markets, but gains are expected to be limited due to possible profit taking.

At 12.30pm, the FBM KLCI rose 7.95 points to 1,842.47. The index had earlier risen to its intra-morning high of 1,844.83.

Gainers and losers were somewhat balanced with 326 advancers and 305 decliners, while 345 counters traded unchanged. Volume was 1.19 billion shares valued at RM745.91 million.

The top gainers included British American Tobacco (M) Bhd, Petronas Dagangan Bhd, Nestle (M) Bhd, Telekom Malaysia Bhd, PPB Group Bhd, RHB Capital Bhd, MISC Bhd, Public Bank Bhd and IHH Healthcare Bhd.

The actively traded stocks included Tiger Synergy Bhd, Ingenuity Consolidated Bhd, Xinghe Holdings Bhd, Nova MSC Bhd, APFT Bhd, Iris Corporation Bhd, Sumatec Resources Bhd and Systech Bhd.

The losers included United Plantations Bhd, Panasonic Malaysia Manufacturing Bhd, Genting Plantations Bhd, Pharmaniaga Holdings Bhd, Super Enterprise Holdings Bhd and Bintulu Port Holdings Bhd.

Asian shares rose and the dollar steadied but remained under pressure on Monday, after a dismal U.S. jobs report led investors to pare bets the U.S. Federal Reserve would hike interest rates any time soon.

Labor Department data showed U.S. employers added the fewest jobs in more than a year in March. The rise of 126,000 jobs was well below expectations for a gain of 245,000 forecast by a Reuters poll of economists.

BIMB Securities Research said Europe and US markets were closed for Easter holiday on Friday.

Meanwhile, it said, key Asian indexes ended mostly higher with sharp increase in China and Japan thanks to late bargain hunting that salvaged an earlier falling market.

The research house said the SHCOMP gained 1.0% to 3,863.93. In Tokyo, the Nikkei added 0.63% to 19,435.08.

“Locally, the FBM KLCI gained 0.14% to 1,834.52 with strong gains mostly in telco stocks.

“Trading participation saw net buying by foreign institutions while local institutions and retail were net sellers.

“We expect the local market to remain positive today as we still maintain our 2015 target at 1,850 for now, driven by strong buying interest from foreign investors. Expect to see immediate resistance at 1,840/44,” it said.

Meanwhile, foreign funds have been quietly rebuilding their portfolio of Malaysian equity, and foreign investors bought RM203.8 million last week, according to MIDF Research.

In his weekly fund flow report today, MIDF Research head Zulkifli Hamzah said most of the purchases came early in the week.