The Edge Markets
25th January, 2017

KUALA LUMPUR (Jan 25): The FBM KLCI remained subdued at the midday break today, as some mild profit taking halted the index’s advance, despite the firmer regional markets.

At 12.30pm, the FBM KLCI gained 2.81 points to 1,683.50. The index had earlier risen to its intra-morning high of 1,684.54.

Gainers led losers by 327 to 272, while 333 counters traded unchanged. Volume was 614.91 million shares, valued at RM728.08 million.

The top gainers included UMW Holdings Bhd, Magni-Tech Industries Bhd, JHM Consolidation Bhd, United Plantations Bhd, Petronas Gas Bhd, Axiata Group Bhd, Enra Group Bhd, SCGN Bhd and Mega First Corporation Bhd.

The actives included Hibiscus Petroleum Bhd, EA Holdings Bhd, KNM Group Bhd, SKH Resources Bhd, IFCA MSC Bhd, CIMB Group Holdings Bhd, Tenaga Nasional Bhd and Benalec Holdings Bhd.

The losers included Danainfra Nasional Bhd, Panasonic Malaysia Manufacturing Bhd, Perusahaan Sadur Timah Malaysia (Perstima) Bhd, Aeon Credit Service (M) Bhd, IHH Healthcare Bhd, SAM Engineering & Equipment Bhd, Eita Bhd and Hai-O Enterprise Bhd.

Asian stocks edged up to three-month highs on Wednesday, helped by a firm finish on Wall Street, while a rebound in the dollar looked vulnerable, as some investors grew sceptical about U.S. President Trump’s policies translating into further gains, according to Reuters.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1% to its highest levels since late October. Australia and Japan led regional stock markets higher, it said.

Kenanga IB Research said the FBM KLCI registered its second consecutive session of gains, gaining 9.38 points or 0.56% to close at 1,680.69, as market breadth turned the table during the final leg of yesterday’s session to return on the black with 416 advancers outpacing 353 decliners.

It said the gains were opposed to investors’ initial cautious sentiment in tandem with regional markets during the first half of yesterday’s session over U.S. President Donald Trump’s trade protectionist stance, as the local bourse was inspired by the firmer ringgit against the greenback at RM4.4355/USD.

“Technical-wise, the toppish momentum indicators such as RSI and Stochastic are still suggesting that upside is limited at this juncture, especially when trading volume is expected to plateau, as we enter the shortened trading week ahead for the Chinese New Year holidays.

“Shall the FBM KLCI manage to convincingly climb above the 1,685 level (R1), it could set sight at 1,700.

“Or else, the FBM KLCI will likely continue to trade tepidly within 1,660-1,680 this week. Next resistance and support levels are located 1,700 (R2) and 1,660 (S2), respectively,” it said.

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