KLCI rises 0.47% on bargain hunting despite regional sell-off

KLCI rises 0.47% on bargain hunting despite regional sell-off
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KUALA LUMPUR (Feb 25): The FBM KLCI rose 0.47% at mid-morning as bargain-hunting activities lifted the local index, despite the persisting sell-off at most regional markets.

At 10am, the FBM KLCI rose 7.03 points to 1,497.09. It had earlier fallen to a low of 1,481.46.

Losers led gainers by 348 to 340, while 300 counters traded unchanged. Volume was 864.84 million shares valued at RM580.99 million.

The top gainers included Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd, British American Tobacco (M) Bhd, Fraser & Neave Holdings Bhd, Malaysia Airports Holdings Bhd, Hartalega Holdings Bhd, Ajinomoto (M) Bhd, Yinson Holdings Bhd, IGB Bhd and Malayan Cement Bhd.

The actives included Avillion Bhd, JAG Bhd, Tiger Synergy Bhd, My EG Services Bhd, Sapura Energy Bhd, Powerwell Holdings Bhd and Eduspec Holdings Bhd.

The decliners included Dutch Lady Milk Industries Bhd, Nestle (M) Bhd, Genting Plantations Bhd, Hong Leong Financial Group Bhd, Petronas Gas Bhd, Petronas Dagangan Bhd and PPB Group Bhd.

Bloomberg said a sell-off that wiped out global stock gains for the year continued in Asia Tuesday amid concerns authorities around the world are struggling to keep the coronavirus from spreading. Havens including Treasuries and the yen held onto losses.

Japan opened lower after a holiday, while Australia and South Korea also fell. Futures in Hong Kong pointed to a weaker start. US futures edged higher after US stock benchmarks slumped more than 3%, with the S&P 500 Index dropping the most since February 2018. European stocks also tumbled, it said.

Hong Leong IB Research said in the US, it expects the profit-taking activities to persist under the ongoing Covid-19 outbreak, where the unresolved situation could impact the global growth outlook.

“Hence, we believe aviation, casino-related stocks as well as tech giants that have exposure in China may stay volatile with downward bias risk in the near term. The Dow’s trading range will be located around 27,000-28,500.

“Tracking the global indices, especially the sharp drop on Wall Street, coupled with the uncertain political developments in Malaysia, we expect selling interest would still be dominating in the local front.

“However, selected heavyweights could be due for a swift technical rebound (overall mid-to-long term trend is still down) on an intra-day basis after a sharp fall yesterday. Should the current political scene remains cloudy, the FBM KLCI will be capped around 1,515-1,530, while support is located around 1,480,” it said.