FBM KLCI inches up amid weak market sentiment

KUALA LUMPUR: The FBM KLCI held steady in early trade Thursday despite a weaker session on Wall Street overnight.

The market bellwether rose 1.64 points, or 0.11% to 1,444.15 at 9.04 am. The index opened 0.52 of a point higher at 1,443.03.

Losers beat gainers 258 to 142 with 418.3 million securities worth RM160.9mil changing hands.

Overnight, the Dow Jones Industrial Average fell 0.32%, to 33,035.93, the S&P 500 lost 1.43%, to 4,186.77 and the Nasdaq Composite dropped 2.43%, to 12,821.22.

Inter-Pacific Research Sdn Bhd said yesterday’s upsides were welcomed as it allowed the key index to break its downward streak as well as to recapture a critical market support level.

However, it cautioned that the conditions could turn uncertain again following the overnight retreat on Wall Street that could leave conditions in a limbo with concerns over the weaker-than-expected corporate earnings performances back in focus.

“Despite the lingering uncertainties and quick profit taking emerging, the downsides could be measured as there could still be mild bargain hunting on some of the recently beaten-down stocks and this could provide some support to the key index.

“Therefore, the FBM KLCI could still linger close to the 1,440 level for the time being as it continues to find its footing from the recent selldown even as the fresh buying interest is relatively benign.

“The other support is at the 200-day moving average line, while the hurdles are at 1,445 points and the psychological 1,450 level,” Inter-Pacific said.

Meanwhile, Apex Securities expects investors to be keeping a close watch on Malaysia’s producer price index data to be released later today whereby it had recorded negative readings for the past seven consecutive

months.

“We continue to favour the technology sector that is riding onto the improved semiconductor industry outlook,” it added.

At Bursa Malaysia, Ajinomoto jumped 30 sen to RM15.50, PETRONAS Dagangan added 12 sen to RM22.68, Hong Leong Bank gained 10 sen to RM19.58 and KESM rose 10 sen to RM7.00.

Hextar Technologies slid 16 sen to RM24.44, Riverview Rubber Estates fell 11 sen to RM3.09, PPB lost 10 sen to RM15.28 and Rapid declined 10 sen to RM26.16.