KLCI stays in positive zone as Asian stocks edge up

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KUALA LUMPUR (Nov 26): The FBM KLCI remained in positive teritory at the midday break on Wednesday in line with most regional markets.

At 12.30pm, the FBM KLCI added 4.65 points to 1,845.08.

The top gainers in the morning session included British American Tobacco (M) Bhd, United Plantations Bhd, South Acids Bhd, Lysaght Galvanised Steel Bhd, LTKM Bhd, Panasonic Malaysia Manufacturing Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Asia File Corporation Bhd and Carlsberg Brewery (M) Bhd.

Minetech Reources Bhd was the most actively traded counter with 69.84 million shares done. The stock fell 3.45% or half a sen to 14 sen.

The other actives included MUI Industries Bhd, Nova MSC Bhd, Asia Media Bhd, Privasia Technologies Bhd, Sona Petroleum Bhd and Sumatec Resources Bhd.

The decliners included Sarawak Oil Palms Bhd, Dutch Lady Milk Industries Bhd, DKSH Bhd, Genting Plantations Bhd, Westports Holdings Bhd, Star Publication (M) Bhd, Karex Bhd, Faber Group Bhd and Berjaya Auto Bhd.

Regionally, Asian stocks edged up on Wednesday after upbeat U.S. economic growth data calmed investor anxiety over a deteriorating global outlook, while the Australian dollar languished near four-year lows against the dollar, according to Reuters.

Oil prices were also under pressure as major oil producing nations failed to agree on curbs to output ahead of an OPEC meeting on Thursday, it said.

Maybank IB head of retail research and cheif chartist Lee Cheng Hooi in a note to clients Wednesday said the FBM KLCI gained 4.79 points to 1,838.56 yesterday, while the FBMEMAS and FBM100 also closed higher by 14.65 points and 16.47 points, respectively.

He said that in terms of market breadth, the gainer-to-loser ratio was 310-to-474 while 305 counters were unchanged, adding that a total of 2.09 billion shares were traded valued at RM2.46 billion. 

Lee said major Asian bourses rose as consumer and industrial shares climbed as Japanese stocks rallied after a holiday in Japan.

“We recommend a “Buy on Dips” stance for the index. The KLCI Nov Futures moved into a small 2.94-point premium against the FBMKLCI.

“We expect some strong buying at the supports of 1,818 to 1,838, whilst profit taking would be at the resistances of 1,843 and 1,858. The index will be volatile after heavy foreign selling activities in early Nov.

“However, we sighted a Bullish Engulfing low at 1,805.35 on 17 Nov with upward rebound confirmation seen soon after. A firmer rebound phase remains in place,” he said.