KUALA LUMPUR (March 26): The FBM KLCI trended marginally higher on Monday, in line with the moderate gains at the regional markets, following the rise pf US stocks in light volume last Friday, buoyed by rising energy and basic materials shares, as the S&P 500 kept showing resilience even as it posted its second negative week so far this year.
At 10am, the FBM KLCI gained 0.91 of a point to 1,586.74.
Gainers trailed losers by 172 to 197, while 254 counters traded unchanged. Volume was 338.36 million shares valued at RM147.06 million.
Asian shares edged up on Monday, finding some support after losing ground last week on fears of the impact of an economic slowdown in China, and the euro held near a three-week high, according to Reuters.
Equity markets had got off to a flying start in 2012, but have been wobbling since China lowered its growth forecast for the year to 7.5 percent in mid-March, with concerns exacerbated by weak factory data from China and Europe last week, it said.
At the regional markets, the ShangHai Compoite Index gained 0.24% to 2,355.07, Hong Kong’s Hang Seng Index was up 0.15% to 20,700.50, and Singapore’s Sraits Times Index edged up 0.10% to 2,987.1.
Meanwhile, japan’s Nikkei 225 fell 0.11% to 10,022.90, Taiwan’s Taiwex lost 0.92% to 8,001.94 and South korea’s Kospi fell 0.38% to 2,019.12.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on March 26 said the FBM KLCI gained 14.43 points to close at 1,585.83 last Friday.
“The local market rose in small daily spurts, with buying on some selective blue chips as well as obvious penny stock plays. The obvious areas for the FBM KLCI are in the 1,549 to 1,585 zone.
“The next resistance levels of 1,587 and 1,597 may see heavy liquidation activities,” he said.
Meanwhile, ECM Libra research in its Market outlook and strategy for 2Q2012 said that Overall, its 2Q2012 outlook was that the FBM KLCI was toppish at 1,600
The research house said upside was limited based on the FBMKLCI’s relatively high PER, but downside was also limited in the run-up to General Elections.
“In 2H2012, we expect the FBMKLCI to trade in a range of 1500-1600. If the General Election is held in June 2012, whatever outcome we think will lead to a market correction in 3Q2012.
“4Q2012 could see the FBMKLCI recovering to end the year at 1600 as the market looks forward to 2013,” it said.
“We are thus Neutral on all sectors except for an Overweight on CONSTRUCTION [] and Building Materials. Buy IJM, WCT, Lafarge, Lion Industries. In PLANTATION []s, switch from IOI to KLK,” it said on Monday.
CIMB chief economist Lee Heng Guie in his regional ccompass report released on March 26 said global growth risks appeared to be easing, going by 1) the encouraging global indicators, 2) ebbing funding pressure in the financial markets, and 3) receding Greece debt default risks, at least for now.
“While the threat of a financial catastrophe has been averted, stronger financial firewalls are needed to safeguard against the risk of contagion in the eurozone.
“We remain wary of an escalation of geopolitical tension in the Middle East that could trigger a global oil price shock. Emerging markets may also have to contend with volatile capital flows,” he said.
ON Bursa MalaySia, the top gainer at mid-morning was SuperComnet that added 13.5 sen to 43.5 sen, MajuPerak 11.5 sen to 40 sen, Maybank up nine sen to RM8.84, Nestle, Shell, Yinson and Genting up eight sen each to RM55.98, RM10.10, RM1.81 and RM11.08 respectively, while Tradewinds Plantations gained seven sen to RM4.87.
Among the decliners, Petronas Dagangan fell 18 sen to RM18.30, Far East down 15 asen to RM7.40, Tenaga and Tradewinds fell nine sen each to R6/59 and RM9.70, Aeon Credit, Deleum, WCT and KESM fell seven sen each to RM8.60, RM2.51, RM2 respective, while Kein Hin and LPI lost six sen each tp RM45 sen and RM13.94.
The actives included Karambunai, Metronic, Trinity, Ariantec, SAAG, Supercomnet and MaujuPerak.
At 10am, the FBM KLCI gained 0.91 of a point to 1,586.74.
Gainers trailed losers by 172 to 197, while 254 counters traded unchanged. Volume was 338.36 million shares valued at RM147.06 million.
Asian shares edged up on Monday, finding some support after losing ground last week on fears of the impact of an economic slowdown in China, and the euro held near a three-week high, according to Reuters.
Equity markets had got off to a flying start in 2012, but have been wobbling since China lowered its growth forecast for the year to 7.5 percent in mid-March, with concerns exacerbated by weak factory data from China and Europe last week, it said.
At the regional markets, the ShangHai Compoite Index gained 0.24% to 2,355.07, Hong Kong’s Hang Seng Index was up 0.15% to 20,700.50, and Singapore’s Sraits Times Index edged up 0.10% to 2,987.1.
Meanwhile, japan’s Nikkei 225 fell 0.11% to 10,022.90, Taiwan’s Taiwex lost 0.92% to 8,001.94 and South korea’s Kospi fell 0.38% to 2,019.12.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on March 26 said the FBM KLCI gained 14.43 points to close at 1,585.83 last Friday.
“The local market rose in small daily spurts, with buying on some selective blue chips as well as obvious penny stock plays. The obvious areas for the FBM KLCI are in the 1,549 to 1,585 zone.
“The next resistance levels of 1,587 and 1,597 may see heavy liquidation activities,” he said.
Meanwhile, ECM Libra research in its Market outlook and strategy for 2Q2012 said that Overall, its 2Q2012 outlook was that the FBM KLCI was toppish at 1,600
The research house said upside was limited based on the FBMKLCI’s relatively high PER, but downside was also limited in the run-up to General Elections.
“In 2H2012, we expect the FBMKLCI to trade in a range of 1500-1600. If the General Election is held in June 2012, whatever outcome we think will lead to a market correction in 3Q2012.
“4Q2012 could see the FBMKLCI recovering to end the year at 1600 as the market looks forward to 2013,” it said.
“We are thus Neutral on all sectors except for an Overweight on CONSTRUCTION [] and Building Materials. Buy IJM, WCT, Lafarge, Lion Industries. In PLANTATION []s, switch from IOI to KLK,” it said on Monday.
CIMB chief economist Lee Heng Guie in his regional ccompass report released on March 26 said global growth risks appeared to be easing, going by 1) the encouraging global indicators, 2) ebbing funding pressure in the financial markets, and 3) receding Greece debt default risks, at least for now.
“While the threat of a financial catastrophe has been averted, stronger financial firewalls are needed to safeguard against the risk of contagion in the eurozone.
“We remain wary of an escalation of geopolitical tension in the Middle East that could trigger a global oil price shock. Emerging markets may also have to contend with volatile capital flows,” he said.
ON Bursa MalaySia, the top gainer at mid-morning was SuperComnet that added 13.5 sen to 43.5 sen, MajuPerak 11.5 sen to 40 sen, Maybank up nine sen to RM8.84, Nestle, Shell, Yinson and Genting up eight sen each to RM55.98, RM10.10, RM1.81 and RM11.08 respectively, while Tradewinds Plantations gained seven sen to RM4.87.
Among the decliners, Petronas Dagangan fell 18 sen to RM18.30, Far East down 15 asen to RM7.40, Tenaga and Tradewinds fell nine sen each to R6/59 and RM9.70, Aeon Credit, Deleum, WCT and KESM fell seven sen each to RM8.60, RM2.51, RM2 respective, while Kein Hin and LPI lost six sen each tp RM45 sen and RM13.94.
The actives included Karambunai, Metronic, Trinity, Ariantec, SAAG, Supercomnet and MaujuPerak.
