KUALA LUMPUR (Feb 3): The main index at Bursa Malaysia rose in early trade Wednesday, tracking regional markets, but gains were seen capped by the extended lockdown that could further pin the economic recovery.
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At 9.06am, the FBM KLCI was up 3.16 points to 1,583.65.
The early gainers included Malaysian Pacific Industries Bhd, Nestle (Malaysia) Bhd, UWC Bhd, Greatech Technology Bhd, Hengyuan Refining Company Bhd, PPB Group Bhd, Petronas Dagangan Bhd (PetDag) and Mi Technovation Bhd.
Bloomberg said Asian stocks opened higher, extending a global rally amid a slew of corporate earnings and a crumbling of the retail trading frenzy that fuelled swings in heavily shorted shares.
The dollar held losses, it said.
Inter-Pacific Research Sdn Bhd said index heavyweights regained some traction yesterday, in line with the gains in regional indices with glovemaker stocks leading the FBM KLCI gainers list as they continue to rebound from their recent selldown.
In its daily bulletin today, the research house said the gains also allowed the key index to end the day at the psychological 1,580 level, but conditions elsewhere stayed muted with losing stocks still dominating gainers.
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It said market interest also stayed relatively insipid, unchanged from the previous day.
Inter-Pacific said while the key index is attempting to break its downward s treak that has already left it oversold and despite the lack of participation, it sees the efforts extending over the near term on mild bargain hunting actions, particularly on some of the beaten down glove makers.
“Although broad optimism is still lacking due to the extended lockdown that could further pin the economic recovery back, we still think the market could build on yesterday’s bounce as the key index could be attempting to find some stability and to build up a base at around the 1,580-1,600 points level.
“The gains in key overseas indices could also provide some near-term impetus for the key index to tip higher.
“In the interim, there is a hurdle at the 1,590 level, while the supports are pegged at 1,575 and 1,566 points respectively,” it said.
The research house said the lower liners and broader market shares, meanwhile, were still consolidating yesterday, but may see some renewed bargain hunting actions over the near-term after their recent pullback.
“However, with the overall market interest still subdued, any recovery is likely to be muted for the time being, in our view,” it said.- The Edge Market