Midday Market KLCI poised to end 1H2013 on firmer note, rises 0.88%

Midday Market KLCI poised to end 1H2013 on firmer note, rises 0.88%
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Friday, 28 June 2013 12:51

KUALA LUMPUR (June 28): The FBM KLCI looked poised to end the first half of 2013 on a firmer note, despite losing just more than 70 points year-to-date in what had been an eventful six months with a volatile local market rocked by the 13th general election sentiments.

At 12.30pm, the FBM KLCI rose 0.88% or 15.32 points to 1,766.89.

Gainers beat losers by 417 to 205, while 251 counters traded unchanged. Volume was 15.32 million shares valued at 656.05 million shares valued at RM923.33 million.

The top gainers in the morning session included BAT, MPHB Capital, LPI Capital, Petronas gas, Tasek, KLK, UMW, Hartalega and Panasonic.

Luster was the most actively traded counter with 28.11 million shares done. The stock added half a sen to 13.5 sen.

The other actives included MAS, TH Heavy Engineering, CLIQ, Tanjung Offshore, MPHB Capital, Astral Supreme, PDZ and Salcon.

The decliners included Hong Leong Capital, F&N, Carlsberg, Tahps, Quality Concrete, Batu Kawan, Y&G, Top Glove, Aeon and Cahya Mata Sarawak.

Affin Investment Bank vice president and head of retail research Dr Nazri Khan said the dollar’s strength and the bullish reaction in the yield curve to cause escalation of selling in high beta overseas equity markets with funds flowing to defensive market such as Malaysia.

“Hence, the defensive appeal of Malaysia should see Bursa trading higher as they braced for safer haven inflow following the regional fund rebalancing.

“Today FBM KLCI upside rebound above 1,720 support level was seen as positive by technicians, perhaps setting up a re-test of June low of 1,760 level late next week after situation stabilise. Following the defensive rebalancing, we expect local equity markets to rebound within a tight and tense 1,750-1,780 range trading” he said.

Meanwhile, Asian shares rose for a third day on Friday led by a sharp rally in Tokyo's Nikkei, which is on track to end the first half of the year up a barnstorming 31 percent, according to Reuters.

Gold, however, plumbed fresh three-year lows with investors battered and bruised after a 30 percent drop this year. Analysts suspect the recent leg lower was due in part to forced liquidations of positions and quarter-end selling by funds, it said.