Bullish momentum grows after four days of gains

KUALA LUMPUR: There is growing bullish momentum on the domestic market following four consecutive days of gains as additional policy support from China bolstered investor sentiment over the regional economy.

At the opening bell, the benchmark FBM KLCI was little changed at 1,436.7 points as investors digested the recent gains and took stock of the developments ahead.

“Going forward, we expect rotational play to buoy the extended upward momentum, while keeping a close tab onto the upcoming US Federal Reserve Interest Rate decision.

“Overall, the market participants are pricing in another 25 basis points of rate hike, and the consensus is pointing towards a potential pause in the subsequent meetings ahead,” said Malacca Securities Research in a note.

Meanwhile, TA Securities Research expects a pause in the rally as investors await for cues from policy meeting by major global central bankers.

“On the index, key resistance capping upside will be from the overhead 200-day moving average at 1,436, with next hurdle only seen at 1,450.

“Immediate support is revised upwards to 1,420, followed by the 1,400/1,390 level, with crucial support at 1,369 to strongly cushion downside,” said the research firm.

On the blue-chip index, Maybank rose three sen to RM9.01 while Maybank gained two sen to RM4.07 and CIMB added two sen to RM5.45.

Kuala Lumpur Kepong climbed 20 sen to RM23.60 following by a three sen gain by Sime Darby Plantation to RM4.62.

PETRONAS Chemicals rose five sen to RM6.81 while Press Metal edged one sen higher to RM4.96.

Taking the investor spotlight was market debutant DayThree Digital, which soared 36 sen to 66 sen.

The stock was the second most active in early rade with 17.61 million shares exchanging hands.

Other top actives included Hong Seng, unchanged at 9.5 sen and Esceram up two sen to 20.5 sen.