Mid-morning Market KLCI rises 0.55%, select blue chips lift

Mid-morning Market KLCI rises 0.55%, select blue chips lift
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Monday, 09 September 2013 10:14

KUALA LUMPUR (Sept 9): The FBM KLCI rose 0.55% art mid-morning on Monday, lifted by gains at select blue chips.

At 10am, the FBM KLCI rose 9.62 points to 1,733.42.

Gainers led losers by 301 to 94, while 146 counters traded unchanged. Volume was 290.10 million shares valued at RM168.49 million.

The top gainers included BAT, Dutch Lady, United PLANTATION []s, Kluang, Aeon Credit, Takaful, Kossan, Pintaras and Petronas Dagangan.

Asia Media was the most actively traded counter with 45.28 million shares done. The stock added half a sen to 12.5 sen.

The other actives included Green Packet, Instaco, Supermax, APFT, MAS and IRCB.

The decliners included Dana Infra, Sarawak Oil Palms, KLK, Cocoaland, Jerasia, Hap Seng Plantations, Tong Herr, GD Express Carrier, Amtek and Mudajaya warrants.

Affin IB vice president and head of retail research Dr Nazri Khan said that following the strong U-turn shown by Bursa (a gain of 64 points or 3.8% since 28 th August low), the FBM KLCI should stage more corrective bounce (with 1750 level as the immediate target) neutralising its deeply-sold-situation (after dropping 151 points or 8.3%, 25th July - 28th August) and tracking more upswings of Wall Street and Asian regional indices.

“On the technical front, we see positive near term bias with the bulls getting early edge as long as FBM KLCI stays above 1700 psycho level and 200 day moving average.

“We expect technical retracement in ringgit and global oversold technical condition (MSCI All-World has dropped 4.1% to six week low since 13th August) to lead to more bounce in regional markets with the FBM KLCI aiming for 1,750 resistance level.

“The dramatic FBM KLCI reversal action at 1,660 level might be seen as a show of strength by technical traders, especially in the wake of a low volume finish this week,” he said.

Elsewhere, the yen dropped on Monday as traders positioned for a rally in Japanese shares after Tokyo won its bid to host the 2020 Summer Olympics, while Asian shares look set to gain after mildly upbeat Chinese trade data underscored signs of stability in the world's second-biggest economy, according to Reuters.

The dollar was steady after plunging against a basket of currencies on Friday following a disappointing jobs report, it said.

The payrolls data saw the dollar index drop to 82.256 from a 7-week high of 82.671 hit on Thursday as some traders pared back expectations that the Federal Reserve might start winding back its stimulus later this month, said Reuters.