KUALA LUMPUR: Trading action on the domestic market looked set to be range-bound for another day as investors await highly anticipated US inflation data, which will inform the Federal Reserve’s next interest rate decision.
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At 9am, the benchmark FBM KLCI was up 0.48 points to 1,433.11, hovering near April highs above the 50-day simple moving average.
Investor trading on the market is expected to pick up following the release of the US consumer price index later tonight while Malaysia’s first-quarter economic growth results on Friday will offer further direction.
“Key index chart supports remain the recent low of 1,391 and last October’s low of 1,372, while immediate overhead resistance stays at 1,450, followed by the leveling 200-day moving average at 1,456, with 1,480 and 1,500 acting as stronger resistance levels,” said TA Securities Research in a report.
Meanwhile Malacca Securities Research said in its own review that the healthcare sector may continue its upward tone after strong buying interest following the release of Hartalega’s results yesterday.
The glove maker had posted a large quarterly net loss of RM302.75mil, mainly owing to an impairment charge of RM347mil from the decommissioning of its Bestari Jaya facility.
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However, the result was better than market expectations, leading to a 39 sen or 20.85% improvement in share price to RM2.26 at the day’s close.
Hartalega showed some slight retracement in Wednesday morning trade, losing eight sen to RM2.18.
Other glove makers also rose following Hartalega’s announcement yesterday on hopes of improving operating conditions in the glove industry.
On Wednesday, Top Glove retraced one sen lower to RM1.08, Kossan dipped two sen to RM1.35 and Careplus was unchanged at 31.5 sen. Supermax meanwhile continued to rise for a second day, adding one sen to 95.5 sen.
Meanwhile, AirAsia X jumped eight sen to RM1.57 on news it had received another three-month extension until July 28 to submit its PN17 regularisation plan.
Among top actives, Jade Marvel was up 1.5 sen to 29 sen, Velesto rose one sen to 24 sen and Tanco gained 0.5 sen to 48 sen. – The Star