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Published: Tuesday November 24, 2009 MYT 10:03:00 AM

FBM KLCI likely to stage mild rebound


KUALA LUMPUR: Buying interest in selective heavyweights pushed the key FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) Index slightly higher.

At 10am, the FBM KLCI added 1.52 points to 1,272.40. Gainers were ahead of losers 183 to 116 with 203 counters unchanged. Some 130.1 million shares were traded, valued at RM145mil.

Among the major gainers were Proton Holdings Bhd, which rose 9 sen to RM3.76, DiGi.Com Bhd added 10 sen to RM21.90 while British America Tobacco (M) Bhd rose 10 sen to RM44.80.

Other gainers included developer Magna Prima Bhd, Kulim (M) Bhd and Shell Refining Co Bhd.

Overnight, US stocks surged, with the Dow Jones Industrial Average touching its highest point in more than a year, on a strong housing report and a rally in commodities. The Dow Jones added 132.79 points to 10,450.95 points, its highest point since Oct 2, 2008.

HwangDBS Vickers Research said the FBM KLCI could stage a technical rebound today, possible climbing towards its immediate resistance threshold of 1,280 ahead (but may not be able to break past this level just yet).

“In essence, sentiment would be boosted by the overnight rally on Wall Street major US stock indices jumped between 1.3% and 1.4% at the closing bell chiefly lifted by better existing home sales and expectations of a prolonged low interest rate environment,” it added.

Meanwhile, Proton and Petronas Dagangan may attract buying interest today after announcing buoyant financial results yesterday evening that beat expectations.

“Conversely, MISC’s share price is expected to come under pressures following the release of a below par earnings report card,” HwangDBS said, adding that Bank Negara’s monetary policy committee – which was expected meet this evening – would probably keep the key overnight policy rate unchanged for now.

“The market continued to consolidate at below the 1,300 point-level and we will see if the sideways trend can be the key index’s launch pad to propel it towards the formidable 1,300 points and subsequently crack it,” OSK Research said in its notes to clients.

It added that as the sideways consolidation was situated only some 30 points below the tough 1,300 points-resistance, it would be easier for the FBM KLCI to violate the 1,300 point-mark convincingly once the consolidation phase ends.

Meanwhile, the research house maintained its bullish bias view towards the near-term market.

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