FBM KLCI marginally higher at mid-morning

KUALA LUMPUR: The FBM KLCI stayed marginally higher at mid-morning on Wednesday, Dec 15 amidst cautious trading as most key regional markets remained mixed.

Asian markets, in particular Japan’s Nikkei 225, mostly stayed flat as investors took profits from earlier gains while technical signs still showed overheating in the market, according to Reuters.

The market rose in early trade, shrugging off news that the Bank of Japan's latest tankan survey showed sentiment among big manufacturers worsened for the first time in seven quarters, it said.

On Bursa Malaysia, the FBM KLCI was up 0.42 points to 1,511.00 at 10am, nudged up by gains including at RHB Capital, Maybank, CIMB and Petronas Chemicals.

Gainers led losers by 217 to 185, while 217 counters traded unchanged. Volume was 254.26 million shares valued at RM293.27 million.

At the regional markets, Japan’s Nikkei 225 was down 0.04% to 10,312.96, the Shanghai Composite Index lost 0.11% to 2,923.88, Taiwan’s Taiex slipped 0.19% to 8,724.02 and the Hong Kong Hang Seng Index opened 0.4% lower at 23,337.16.

Meanwhile, South Korea’s Kospi was up 0.20% to 2,013.07 and Singapore’s Straits Times Index added 0.04% to 3,178.19.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said the FBM KLCI’s resistance areas at 1,512 and 1,531 may cap market gains, whilst its firm support areas are located at 1,495 and 1,510.

“Due to the marginally firm US markets last night, we may see the FBM KLCI in a range trading mode today too – with good buying activities that may see profit-taking in the later part of the day.

“The FBM KLCI created a new all-time peak at 1,531.99 on Nov 10. A temporary correction low had been formed at 1,474.02 on Nov 29,” he said in a note Dec 15.

The FBM KLCI remains trapped between the low of 1,474 and the high of 1,531 for now, with some possible upside potential, said Lee.

Among the gainers in early trade this morning, Tradewinds added 17 sen to RM5.95, CBIP rose 13 sen to RM3.71, Quality Concrete was up 10 sen to RM1.49, Supermax and IJM PLANTATION []s added nine sen each to RM4.44 and RM3.09, Kulim rose eight sen to RM13.10, Fima Corp and RHB Capital added seven sen each to RM5.60 and RM8.49, CIMB up six sen to RM8.66 while Maybank and Petronas Chemicals rose two sen each to RM8.50 and RM5.57.

KNM advanced in active trading after Maybank IB Research maintained its buy call on the stock and raised its target price to RM3.10 from RM2.20. The stock was up 14 sen to RM2.47 with 13.44 million shares done.

Other actives included Fitters, Olympia, Petronas Chemicals and Careplus.

Decliners at mid-morning included Tasek, KLK, Glenealy, MNRB, Tan Chong, Top Glove and PPB. (Surin Murugiah , theedgemalaysia.com)