Market Open KLCI edges up, but technical correction may be looming

by **Cals** Wed 04 Mar 2015, 21:36

Market Open
KLCI edges up, but technical correction may be looming

By Surin Murugiah / theedgemarkets.com | March 4, 2015 : 9:23 AM MYT

KUALA LUMPUR (March 4): The FBM KLCI remained firmly above the 1,800-point level in early trade on Wednesday despite a more cautious regional environment, but analysts have cautioned that the local index was ripe for a technical correction.

At 9am, the FBM KLCI rose 4.41 points to 1,825.66.

The top gainers included [size=14]British American Tobacco (M) Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Kuala Lumpur Kepong Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Petronas Gas Bhd, MISC Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), UMW Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), KLCC Property Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), SapuraKencana Petroleum Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Westports Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), The Nomad Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) and Petronas Chemicals Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard).

An index of Asian shares and the dollar both edged down on Wednesday, as investors grew cautious ahead of central bank meetings and U.S. data later in the week,according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.1 percent in early trade, while Japan's Nikkei stock average fell 0.8 percent, it said.

Hong Leong IB Research in a market preview Wednesday said the FBM KLCI was expected to trade range bound in the near term amid rich valuations, toppish technicals and nagging domestic concerns such as potential more 2015 earnings downgrade, depressed Ringgit, volatile oil prices, IMDB debt saga, GST risk and potential credit rating downgrade by Fitch (end May).

“Stiff resistances are 1830-1850 while supports fall on 1790-1800,” it said.
[/size]