KLCI stages mild rebound, seen as short-term gain

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KUALA LUMPUR (June 3): The FBM KLCI rebounded in the morning session today, lifted by some mild bargain hunting on select blue chips.

At 12.30pm, the FBM KLCI rose 5.62 points to 1,746.99.

Gainers edged losers by 338 to 325, while 293 counters traded unchanged. Volume was 785.47 million shares valued at RM804.07 million.

The top gainers included British American Tobacco (M) Bhd, Kuala Lumpur Kepong Bhd, Cocoaland Holdings Bhd, Y&G Corporation Bhd, Sime Darby Bhd, Pharmaniaga Holdings Bhd, United Plantations Bhd and Sarawak Oil Palms Bhd.

The actively traded stocks included Nexgram Holdings Bhd, Vsolar Group Bhd, KNM Group Bhd, Perisai Petroleum Teknologi Bhd, Systech Bhd, Frontken Corporation Bhd, AirAsia X Bhd and Icon Offshore Bhd.

The top losers included Dutch Lady Milk Industries Bhd, Aeon Credit Services (M) Bhd, UMW Holdings Bhd, Batu Kawan Bhd and Malaysia Pacific Industries Bhd.

Equity markets in Asia were subdued on Wednesday as a widespread spike in debt yields dented the allure of risky assets, while the euro stood tall after surging on upbeat euro zone inflation data and hopes that Greece will reach a deal with its creditors, according to Reuters.

Japan's Nikkei lost 0.4% while Australian shares shed 0.8% with Indonesian stocks also slipping. In a patchy session for the region, the modest gainers included South Korea's KOSPI index as well as Chinese and Hong Kong stocks, it said.

AffinHwang Capital Research said the FBM KLCI was anticipated to stage a short-term rebound whilst digesting bullish catalysts and positive news from major markets.

“Market participants opine that bulk of recent bearish catalysts seem limited to local issues only and the real impacts to domestic economy are expected to be limited and temporary.

“Great opportunity for Trading Buy on selected quality stocks,” it said.