Market Close KLCI rises 0.49% as global markets steady, select blue chips lift

Market Close KLCI rises 0.49% as global markets steady, select blue chips lift
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Friday, 20 September 2013 17:05

KUALA LUMPUR (Sept 20): The FBM KLCI rose to close 0.49% higher on Friday, as global markets steadied and consolidated a week of gains following the the U.S. Federal Reserve's surprise decision to keep its stimulus intact.

At 5pm, the FBM KLCI gained 8.92 points to 1,801.83.

Gainers beat losers by 445 to 349, while 285 counters traded unchanged. Volume was 2.4 billion shares valued at RM2.45 billion.

The top gainers included Hibiscus, Sungei Bagan, CIMb, Kluang, MAHB, Wong Engineering and Petronas Dagangan.

The actives included Sona Petroluem, TMS, CLIQ, Luster, Daya Materials, MAS and China Stationery.

The losers included United PLANTATION []s, PPB, Hartalega, Kossan, KLK, KLCC, Cahya Mata Sarawak, Shell and Pharmaniaga.

Affin IB vice president and head of retail research Dr Nazri Khan said that foing forward, he expects softer market action after the global stock market hitting five year highs last week (MSCI All World, FTSE All World & FBMKLCI gaining 12.5%, 12.1% and 5.6% respectively).

He said the FBMKLCI likely corrected on global overbought situation, and caution on Federal Reserve stimulus tapering statement and thin post-Malaysia-Day weekly session.

“Although we believe stocks should temporarily consolidates, positive signs from easing Syria geopolitical tension and improved China economy may indicate any weakness are good buying opportunities.

Nazri said immediate resistance is seen at both July and August high near 1,780 and 1,800 level respectively while immediate support on profit-taking pull-back will be at July low and 50-day moving average near 1,760 and 1,730 level.

Elsewhere, world shares steadied at a five-year high on Friday and bond and commodity markets were consolidating a week of major gains after the U.S. Federal Reserve's shock decision to keep its stimulus intact, according to Reuters.

After the sharp moves of Wednesday and Thursday, Asian and early European trading was largely subdued as investors took stock of their positions and locked in some of the gains, with half an eye on German elections on Sunday, it said.