KLCI opens higher, tracking US share gains

KUALA LUMPUR (Aug 24): Bursa Malaysia opened higher on mild bargain-hunting in almost all the index-linked stocks while tracking the gains on Wall Street last Friday, dealers said.

At 9.03 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) improved 2.00 points to 1,579.12 compared with 1,577.12 at previous’ close.

The FBM KLCI opened 1.43 points higher at 1,578.55.

On the broader market, there were 370 gainers and 101 losers, while 294 counters were unchanged, 1,253 untraded and 22 others suspended.

Trading volume stood at 473.74 million shares worth RM189.95 million.

US stockmarkets ticked up as the Dow rose 0.7 per cent, while both the S&P 500 (+0.3 per cent) and the Nasdaq (+0.7 per cent) finished at fresh record high levels on the stronger-than-expected preliminary US Purchasing Managers Index (PMI) data.

For the day ahead, Malacca Securities Sdn Bhd said with lack of fresh leads, the FBM KLCI may linger within a tight range as gains will be tempered by quick profit-taking.

As it is, it said investors will continue to digest the barrage of corporate earnings releases to re-asses their investment strategies.

“We also see trading activities among the lower liners to remain vibrant, supported by the uninterrupted liquidity as investors continue to seek for higher yields in the equities market.

“On technical outlook, we think that the consolidation will remain a feature with the 1,600 serving as the immediate resistance, followed by 1,615,” it said in a research note today.

On the technical downside, the brokerage firm said immediate support remained pegged at 1,550, followed by 1,540.

Of the heavyweights, Maybank and Tenaga were flat each at RM7.55 and RM11.00, respectively, Top Glove added 24 sen to RM28.24, Public Bank eased two sen to RM17.28, while Hartalega dropped 10 sen to RM17.64.

Among actives, PWorth and Lambo bagged half-a-sen each to four sen and 5.5 sen, respectively, and XOX inched up 1.5 sen to 22.5 sen.

Top Glove was top gainer, followed by Pharmaniaga which improved 21 sen to RM4.54 and MSCM which climbed 20 sen to RM1.70.

On the index board, the FBM Emas Index increased 22.05 points to 11,372.13, the FBMT 100 Index was 17.67 points higher at 11,176.91, and the FBM 70 strengthened 37.13 points to 14,773.41.

The FBM Emas Shariah Index added 30.18 points to 13,459.99 and the FBM ACE surged 102.02 points to 11,023.90.

Sector-wise, the Financial Services Index fell 11.24 points to 13,037.73, the Industrial Products and Services Index rose 0.62 of-a-point to 142.89, and the Plantation Index chalked up 4.80 points to 7,044.46.

Source: TheEdgeMarkets