Midday Market KLCI rises 0.42% on upbeat global manufacturing data

Midday Market KLCI rises 0.42% on upbeat global manufacturing data
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Tuesday, 03 September 2013 12:42

KUALA LUMPUR (Sept 3): The FBM KLCI rose 0.42% at the midday break on Tuesday, in line with gains at most regional markets that rose on upbeat global manufacturing data.

At 12.30pm, the FBM KLCI added 7.18 points to 1,724.74.

Gainers led losers by 323 to 235, while 273 counters traded unchanged. Volume was 568.15 million shares valued at RM518.21 million.

The top gainers included Dutch Lady, Petronas Gas, Tenaga, Batu Kawan, Southern Acids, NSOP, Maxis, Parkson, Delloyd and Khind.

The actives included Land & General, Pesona, Flonic, MQ Tech, Digista, Idimension, sona Petroleum, Compugates and China Stationery.

The losers included BAT, Tahps, United PLANTATION []s, GAB, APB, Bonia, Shanri-La, MGRC and MSM Malaysia.

Maybank IB head of retail research and chief chartist Lee Cheng Hooi said the FBM KLCI’s resistance levels of 1,718 and 1,745 will cap market gains, whilst weaker support levels are at 1,689 and 1,710, respectively.

He said the FBM KLCI’s recent swings are 1,826.22 (high), 1,723.74 (low) and 1,811.65 (high).

“We prefer a “Sell on Rallies” stance for the index. In line with regional market weakness, the local equity market and Malaysian Ringgit are likely to remain weak as foreign funds sell and exit Malaysia and the Asean region.

“Due to the European markets’ gains, we should see another low-volume rebound to sell into,” he said.

Elsewhere, upbeat factory data from around the globe powered Asian markets on Tuesday, while gold and the yen lost some of their safe-haven appeal as the U.S. delayed a possible strike on Syria, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7 percent, building on Monday's 1.2 percent rise and on track for a fourth day of gains, it said.