KLCI sees limited gains in line with mixed regional markets

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KUALA LUMPUR (Apr 15): The FBM KLCI rose at the midday break today but gains were limited as sentiment remained lacklustre after the International Monetary Fund said Malaysia’s growth is expected to slow markedly to 4.8% this year from 6% in 2014 (a downward revision of 0.4 percentage point) on weaker terms of trade.

Investors also stayed cautious at the local bourse in line with the mixed sentiment at most regional markets.

At 12.30pm, the FBM KLCI was up 3.32 points to 1,842.93. It had earlier dipped to its intra-morning low of 1,836.37.

Gainers overtook losers by 436 to 271, while 330 counters traded unchanged. Volume was 1.51 billion shares valued at RM1.03 billion.

The top gainers included Aeon Credit Services (M) Bhd, British American Tobacco (M) Bhd, SapuraKencana Petroleum Bhd, IFCA MSC Bhd, Only World Group Holdings Bhd, Century Bond Bhd, UMW Oil and Gas Corporation Bhd and Dayang Enterpise Holdings Bhd.

The top actives included Xinghe Holdings Bhd, Perisai Petroleum Teknologi Bhd, Globaltec Technology Bhd, Sumatec Resources Bhd, APFT Bhd, Ingenuity Consolidated Bhd and KNM Group Bhd.

The top losers included Nestle (M) Bhd, Hong Leong Financial Group Bhd, Time Dotcom Bhd, Asia Brands Bhd, United Plantations Bhd, Lafarge Malaysia Bhd and Genting Bhd.

Asian markets were lost for direction on Wednesday after a reading on Chinese growth held up better than many had feared, only for data on retail sales and industrial output to disappoint.

The mixed bag was mirrored in the market reaction with Chinese shares edging higher while commodity currencies such as the Australian dollar took a hit from signs of softer demand.

Maybank IB head of retail research and chief chartist Lee Cheng Hooi in a note to clients today said the FBM KLCI fell 2.47 points to 1,839.61 yesterday, while the FBMEMAS and FBM100 also closed lower by 13.00 points and 13.79 points, respectively.

Lee recommended a “Nibble on Dips” stance for the index.

“We recommend a 'Nibble on Dips' stance for the index. The KLCI Apr Futures moved into a marginal 0.11-point discount against the FBMKLCI.

“We expect some buying at the supports of 1,825 to 1,837, whilst profit-taking activities will cap rebounds at the resistances of 1,839 and 1,856.

“The index’s rebound from the 1,671.82 low will persist as buying interest remains good, albeit in a narrow range. Nibble on dips at the supports of 1,825 and 1,837 and take profit at the resistance areas mentioned above,” he said.