Muted gains for KLCI on mild profit taking

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KUALA LUMPUR (April 2): The FBM KLCI edged up at the midday break today in line with most regional markets but gains were limited as some mild profit taking kept a lid on the local market’s progress.

At 12.30pm, the FBM KLCI was up 1.99 points to 1,828.30.

The top gainers included British American Tobacco (M) Bhd, Aeon Credit Services (M) Bhd, Batu Kawan Bhd, Super Enterprise Holdings Bhd, Hartalega Holdings Bhd, Westports Holdings Bhd, Negeri Sembilan Oil Palms Bhd, UMW Holdings Bhd, Berjaya Food Bhd, Guinness Anchor Bhd, Only World Group Holdings Bhd and GD Express Carrier Bhd.

The actives included Ingenuity Consolidated Bhd, Systech Bhd, Iris Corporation Bhd, Xinghe Holdings Bhd, Iris Corporation Bhd, Privasia Technology Bhd and Perisai Petroleum Teknologi Bhd.

The decliners included IJM Plantations Bhd, IHH Healthcare Bhd, Manulife Holdings Bhd, Syarikat Takaful Malaysia Bhd, Imaspro Holdings Bhd and Southern Acids (M) Bhd.

Asian shares rose on Thursday, shrugging off weak U.S. data overnight that raised concerns ahead of Friday's key employment figures as investors covered positions ahead of the Easter holidays, according to Reuters.

Most U.S. markets will be closed on Friday, with some European markets closed Friday through Monday and reopening on Tuesday, it said.

Maybank IB head of retail research and chief chartist Lee Cheng Hooi in a note to clients today said the FBM KLCI fell 4.47 points to 1,826.31 yesterday, while the FBMEMAS and FBM100 also closed lower by 45.71 points and 42.58 points, respectively.

He said that in terms of market breadth, the gainer-to-loser ratio was 292-to-478 while 324 counters were unchanged. A total of 2.91b shares were traded valued at RM1.57b.

“We recommend a “Nibble on Dips” stance for the index. The KLCI Apr Futures moved into a 3.19-point premium against the FBM KLCI. We expect some minor buying at the supports of 1,806 to 1,823, whilst heavy liquidation activities may cap rebounds at the resistances of 1,826 and 1,840.

“The index was volatile after selling emerged in Nov and it plunged to a fresh low of 1,671.82 on Dec 17, 2014. The rebound from the 1,671.82 low may persist despite post 1Q15 window dressing profit taking activities. Nibble on dips at the supports of 1,806 and 1,823, with a very short-term trading time. Taking profits at the stipulated resistances would be wise,” he said.