KUALA LUMPUR (Feb 5): The main index of Bursa Malaysia reversed its earlier gains and dipped in the mid-morning as glove makers and plantation stocks dragged against a backdrop of mixed regional markets.
At 10am, the FBM KLCI had fallen 2.82 points to 1,582.08. The index earlier rose to a high of 1,590.47.
Gainers edged losers by 399 to 361, while 415 counters traded unchanged. Trading volume was 1.56 billion shares valued at RM850.08 million.
The decliners included Nestle (Malaysia) Bhd, Kuala Lumpur Kepong Bhd (KLK), Supermax Corp Bhd, Unisem (M) Bhd, Top Glove Corp Bhd, PPB Group Bhd, United Plantations Bhd and Batu Kawan Bhd.
The actively traded stocks included i-Stone Group Bhd, Trive Property Group Bhd, Luster Industries Bhd, QES Group Bhd, Iris Corp Bhd and Fintec Global Bhd.
The gainers included Malaysian Pacific Industries Bhd, Genetec Technology Bhd, See Hup Consolidated Bhd and Hong Leong Bank Bhd (HLB).
Reuters said Asian futures were little changed in early trading after progress in vaccine distribution and a large US stimulus programme sent two major Wall Street indices to record closing highs.
E-mini futures for the S&P 500 and Hong Kong’s Hang Seng Index futures were essentially flat, while Japan’s Nikkei 225 futures inched 0.1% higher, it said.
Inter-Pacific Research Sdn Bhd said the key index managed to eke out minor gains at the end of the day (yesterday), helped by late bargain-hunting action on selective oil and gas (O&G) heavyweights.
In its daily bulletin today, the research house said that elsewhere, conditions were also mostly positive with lower liners and broader market shares seeing an increased following, particularly among technology-related stocks.
It said the increased following also saw traded volume pick up for the day, complimenting the positive market breadth.
“We continue to think that the KLCI is likely to linger within the 1,580- and 1,600-point levels over the near term as it attempts to find stability and build up a base following the past month’s consolidation.
“Domestically, there are still few noteworthy leads given that the movement control order (MCO) conditions are still prevalent, slowing down economic recovery prospects.
“Therefore, overseas leads are likely to be the main impetus for now, and with Wall Street and many global indices continuing to chalk new highs, the positivity should also permeate the domestic market,” it said.
However, the research house said with overall market participation still low to moderate, it thinks that significant gains will be hard to come by, and this will leave the key index within the above ranges for now.
It said apart from the above support and resistance levels, the others are at 1,575 and 1,610 points respectively.
“Conditions in the broader market should also remain broadly upbeat amid a slight improvement in retail interest that should provide some near-term impetus for these stocks to tip higher.
“Nevertheless, we think the bargain-hunting activities could be quickly tempered by profit-taking action as retail players could be quick to lock in their gains ahead of the weekend, limiting their upside,” it said.-The Edge Market