KLCI reverses loss to tick higher, but gains seen limited

KUALA LUMPUR (Feb 22): The main index of Bursa Malaysia reversed its loss and ticked higher in the mid-morning today, tracking regional markets, but gains were seen limited.

At 10am, the FBM KLCI had added 0.18 points to 1,585.11. The index earlier slipped to a low of 1,585.54.

Gainers led losers by 541 to 441, while 367 counters traded unchanged. Trading volume was 3.95 billion shares valued at RM1.39 billion.

The gainers included Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Dutch Lady Milk Industries Bhd, Pimpinan Ehsan Bhd, Nestle (Malaysia) Bhd, Kobay Technology Bhd, KESM Industries Bhd and Petronas Gas Bhd (PetGas).

The actively traded stocks included Key Alliance Group Bhd, Nexgram Holdings Bhd, Mestron Holdings Bhd, Dolphin International Bhd, AT Systematization Bhd, EA Holdings Bhd and Sapura Energy Bhd.

The decliners included Tasco Bhd, Mi Technovation Bhd, ViTrox Corp Bhd, Supermax Corp Bhd, Amtel Holdings Bhd, Hengyuan Refining Company Bhd, G3 Global Bhd, Top Glove Corp Bhd and Malaysia Smelting Corp Bhd.

Reuters said Asian share markets inched higher today as expectations for faster economic growth and inflation globally battered bonds and boost commodities, though rising real yields also made equity valuations look more stretched in comparison.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1%, after easing from a record top late last week, as a jump in US bond yields unsettled investors, it said.

JF Apex Research said last Friday, US markets ended flat amid rising rates, profit taking from technology counters and US Treasury Secretary Janet Yellen’s comment that more stimulus was needed.

It said that earlier, European stocks advanced following corporate earnings, Purchasing Managers’ Index (PMI) data and Yellen’s comments.

“On the local market, the KLCI rose 9.09 points or 0.58% to 1,584.93 points.

“Following the mixed performances on Wall Street, the KLCI could continue to hover sideways below the resistance at 1,615 points,” it said.

Source: TheEdgeMarkets