KLCI struggles to sustain gains

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mid_morning_market_up_theedgemarkets

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KUALA LUMPUR (Nov 26): The FBM KLCI struggled to sustain its gains at mid-morning, fending off profit taking ahead of the holiday shortened tarding week at Wall Street.

At 10am, the FBM KLCI was up 0.88 points to 1,839.44.

The top gainers included United Plantations Bhd, British American Tobacco (M) Bhd, Lysaght Galvanized Steel Bhd, Dutch Lady Milk Industries Bhd, Gas Malaysia Bhd, Tahps Group Bhd and Genting Bhd.

MUI Industries Bhd was the most actively traded counter with 54.14 million shares done. The stock jumped 15.22% or 3.5 sen to 26.5 sen.

The other actives include Nova MSC Bhd, Minetech Resources Bhd, Asia Media Bhd, Sona Petroleum Bhd, Privasia Technologies Bhd and Sumatec Resources Bhd.

The decliners included Sarawak Oil Palms Bhd, Star Publications (M) Bhd, Berjaya Auto Bhd, Time Dotcom Bhd, Protasco Holdings Bhd, DKSH Bhd,MMC Corporation Bhd, Tasek Corporatiopn Bhd and Westporst Holdings Bhd.

Regionally, Asian stocks edged up on Wednesday after data showing the U.S. economy growing at a relatively solid pace calmed investor anxiety over slowing global growth, 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.

Hong Leong IB Research said yesterday’s white candlestick which indicated that bulls were in control on Tuesday would continue to climb higher today.

“Resistances are 1850, 1860 and 1880. However, the FBM KLCI might erase some gains during the day as hourly chart showed that teh FBM KLCI would take a breathier after follow-through technical rebounds on Monday and Tuesday. Next supports are pegged at 1836, 1823 and 1812.

“The general outlook of the FBM KLCI remains weak and bearish as a result of its medium-term downtrend line, unless 1850 is taken out,” it said.