KLCI rises amidst choppy trade

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KUALA LUMPUR (Oct 30): The FBM KLCI rose at mid-morning today amidst some choppy trading in line with the tepid regional markets.

At 10.01am, the FBM KLCI climbed 1.10 points to 1,668.08. The index had earlier dipped to a low of 1,663.76.

The gainers at mid-morning included British American Tobacco (M) Bhd, Teck Guan Perdana Bhd, Petronas Dagangan Bhd, Guinness Anchor Bhd, Top Glove Corporation Bhd, Chin Teck Plantations Bhd, Kossan Rubber Industries Bhd, Unisem (M) Bhd, Bursa Malaysia Bhd and Maxis Bhd.

The actives included iDimension Consolidated Bhd, Inix Technologies Bhd, ES Ceramics Technology Bhd, RGB International Bhd, Tiger Synergy Bhd and Metronic Global Bhd.

The top losers included PPB Group Bhd, Sarawak Oil Palms Bhd, DKSH (M) Holdings Bhd, KESM Industries Bhd, Tan Chong Motor Holdings Bhd and Pos Malaysia Bhd.

Asian shares were down on Friday and on track for a weekly loss as investors grappled with the prospect of higher borrowing costs in the United States, as the Federal Reserve (Fed) prepares to raise rates amid the backdrop of slowing global growth, according to Reuters.

Data released overnight showed US gross domestic product increased at a 1.5% annual rate, just shy of the consensus forecast for 1.6% growth and slowing from a 3.9% rise in the second quarter. But solid consumer spending kept alive the possibility that the Fed could deliver an interest rate increase in December, it said.

Hong Leong IB Research said in the wake of renewed volatility in the global markets following a surprised hawkish FOMC statement on Oct 29, the research house reiterated its view that the FBM KLCI will engage in extended profit-taking consolidation due to its bearish technical readings, the weak ringgit coupled with expectations of another lackluster 3Q15 reporting season in November.

“Key upside hurdles are 1,675–1,690 while supports fall on 1,642–1,650,” it said.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)