Published: Thursday March 7, 2013 MYT 10:00:00 AM
UMW, Petronas stocks lead KLCI higher
KUALA LUMPUR: Fund buying of UMW and Petronas-related stocks pushed the FBM KLCI higher in early trade on Thursday, taking the cue from the record Wall Street performance, but there could be some profit taking later.
At 9.43am, the FBM KLCI was up 1.6 points to 1,653.44. Turnover was 165.72 million shares valued at RM118.91mil. There were 174 gainers, 106 losers and 181 counters unchanged.
Maybank KE Research said the KLCI's resistance level of 1,655 and 1,661 might cap market gains, whilst the support areas were at 1,638 and 1,651.
"The KLCI made a key all-time high of 1,699.68 on Jan 4, 2013 followed by a swing low of 1,597.00.
"Despite the US markets' rise last night, we expect the local index's rebound to test the 62% retracement level of 1,648.34 1,660.46. The index may be gaining further upward traction," said the research house.
Reuters reported Japan's Nikkei share average rose above 12,000 on Thursday for the first time in 4-1/2 years, with risk appetite supported by a record high on Wall Street and the prospect of Japan soon adopting aggressively reflationary monetary policy.
Hong Leong Capital continued its upward march, rising 20 sen to RM3.60 from its takeover offer price of RM1.71.
Hong Leong Bank gained 12 sen to RM14.52 and Bursa nine sen to RM6.89.