Business

Published: Tuesday November 24, 2009 MYT 1:09:00 PM

Upward momentum expected to continue


KUALA LUMPUR: The overnight gains on Wall Street lifted trading sentiment on the local bourse.

Share prices on the FTSE Bursa Malaysia KL Composite Index (FBM KLCI) rose marginally at the midday break.

At 12.30pm, the FTSE Bursa Malaysia KL Composite Index (FBM KLCI) rose 2.38 points, or 0.19%, to 1,273.26 points.

Losers thumped gainers 284 to 247 while 262 counters were traded unchanged. About 345.8 million shares changed hands, valued at some RM492.4mil.

Dealers said gain on the benchmark index was lifted by sharp gains in the prices of other blue chip counters.

On Bursa Malaysia, Kuala Lumpur Kepong Bhd, which topped the gainer’s list jumped 44 sen to RM15.56. UBG Bhd added 33 sen, or 15.6% to RM2.45 while Panasonic Manufacturing Malaysia Bhd rose 28 sen to RM12.80.

Among the bigger losers were Mamee-Double Decker Bhd, Hai-O Enterprise Bhd and Batu Kawan Bhd.

SJ Securities said the Relative Strength Index (RSI) of 60.51 was far from the overbought level of 83 while stochastic was on neutral stand.

“Resistance is at 1,273 to 1, 276 points. Today, the FBM KLCI is expected to trade within the range of 1263 to 1279,” it said.

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.

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.

Elsewhere in the region, the Singapore Straits Times Index lost 2.88 points to 2,795 while Hong Kong’s Hang Seng Index was 48.61 points lower at 22,722.78.

Japan’s Nikkei 225 eased 70.94 points to 9,426.74 points.

Meanwhile, the Jakarta Composite Index lost 8.36 points to 2,473.06.40 and Shanghai’s Composite Index was up 3.61points to 3,342.28 points.

On the commodity markets, crude oil advanced 10 cents to US$77.67 while crude palm oil futures lost RM31 to RM2,455.

  • E-mail this story
  • Print this story