FBM KLCI rebounds but 1,500-level still elusive

KUALA LUMPUR: The FBM KLCI rebounded in early trade on Tuesday, Dec 21 in line with the marginal gains at most key regional markets that advanced on bargain hunting, as investors picked up stocks battered in recent days.

However, it struggled to breach the psychologically-crucial 1,500-point level as gains were limited amidst light trading.

At 10am, the FBM KLCI was up 3.48 points to 1,499.36, lifted by gains including at Genting, Tenaga and PLUS Expressways.

Gainers led losers by 237 to 147, while 197 counters traded unchanged. Volume was 235.76 million shares valued at RM215.31 million.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note Dec 21 said that due to the mixed US markets last night, the FBM KLCI could be in a range trading mode today too, with profit taking activities that may by cushioned by later miniscule nibbling activities.

“The FBM KLCI remains trapped between the low of 1,474 and the high of 1,531 for now, with some further downside potential as we broke below the psychological 1,500-support level recently,” he said.

At the regional markets, Japan’s Nikkei 225 added 0.74% to 10,291.68, the South Korean Kospi was up 0.67% to 2,033.74, the Shanghai Composite Index gained 0.46% to 2,865.95, Taiwan’s Taiex rose 0.15% to 8,781.68, the Hong Kong Hang Seng Index opened 0.3% higher at 22,711.46 while the Singapore Straits Times Index shed 0.05% to 3,131.55.

On Bursa Malaysia, the top gainer at mid-morning was Nestle that added 98 sen to RM43; highway operators MTD Capital and PLUS advanced after both received separate buyout offers on Monday.

MTD was up 45 sen to RM9.35 while PLUS added 24 sen to RM4.60.

Mudajaya rose 28 sen to RM4.28, Hap Seng gained 19 sen to RM6.42, Jaya Tiasa added 17 sen to RM4.47, Lion Forest Industries up 13 sen to RM2.18, Genting gained 12 sen to RM10.46, QL Resources up 11 sen to RM5.65 while Tenaga rose nine sen to RM8.35.

Losers in early trade included BAT, DFZ Capital, Hai-O, Lafarge Malayan Cement, Batu Kawan, Tasek, Dutch Lady and IJM Land.

Actives included Timecom, PLUS, Baneng, DRB-Hicom and Hubline.(theedgemalaysia.com)