KLCI recovers on mild year-end window dressing

KUALA LUMPUR (Dec 18): The FBM KLCI recovered at the midday break Wednesday on some mild year-end window dressing and rose 0.3%, tracking regional markets.

At 12.30pm, the FBM KLCI was up 4.78 points to 1,581.73. The index had earlier slipped to a low of 1,570.9.

Losers edged gainers by 313 to 257, while 482 counters traded unchanged. Volume was 1.39 billion shares valued at RM871 million.

The gainers included Fraser & Neave Holdings Bhd, Heineken Malaysia Bhd, KESM Industries Bhd, Hong Leong Bank Bhd, PPB Group Bhd, Nestle (M) Bhd, Genting Plantations Bhd, Public Bank Bhd, LPI Capital Bhd and Kuala Lumpur Kepong Bhd.

The actives included Ekovest Bhd, FoundPac Group Bhd, KNM Group Bhd, Sapura Energy Bhd, JAG Bhd, Iskandar Waterfront City Bhd, Rimbunan Sawit Bhd, EcoWorld Development Group Bhd and i-Stone Group Bhd.

The decliners included Dutch Lady Milk Industries Bhd, Ajinomoto (M) Bhd, Petronas Gas Bhd, British American Tobacco (M) Bhd, Apollo Food Holdings Bhd, Panasonic Manufacturing Malaysia Bhd, Rapid Synergy Bhd and QL Resources Bhd.

Asian stocks camped out at 18-month peaks on Wednesday having climbed for five straight sessions, while the British pound was licking fresh wounds as revived Brexit fears came back to bite it, according to Reuters.

MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1% to its highest since June last year. Japan’s Nikkei dipped 0.3% and off a 2019 top, it said.

Affin Hwang Capital Research said the FBM KLCI gained 7.6 points or 0.5%, to close at 1,576.95 on Tuesday.

Commenting on the key technical note, the research house said the moving average convergence divergence (MACD) indicator on the daily chart has successfully crossed above the Signal line (golden-cross), which may be a positive catalyst to prompt a higher move in price.

“As further upside is perceived to be possible, anticipate the index to retest minor resistance around 1,580-1,585 followed by key resistance around 1,615 if price continue to move upwards.

“Major down trend remains. ‘Window dressing’ play likely to unfold in the near term,” it said.

Source: TheEdgeMarkets