Mild rebound early Wednesday but can it last? – Business News


KUALA LUMPUR: Blue chips staged a mild rebound early Wednesday after two previous days of late selling pressure, with consumer stocks and Genting Malaysia underpinning the FBM KLCI.

However, what is most on investors’ minds are whether the KLCI hold on its gains or come under another day of late selling which does not augur well for Bursa Malaysia.

At 9.21am, the KLCI was up 2.59 points or 0.15% at 1,736.20. Turnover was 279.74 million shares valued at RM106.11mil. There were 138 gainers, 1779 losers and 269 counters unchanged.

Asian stocks slipped on Wednesday after weaker crude oil prices took a toll on Wall Street, while the euro kept big gains after enjoying a boost from robust German economic growth, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.16%. Australian stocks dropped 0.48% and South Korea’s KOSPI shed 0.5%. Japan’s Nikkei lost 0.8%.

Reuters also reported US oil prices tumbled on Wednesday, continuing Tuesday’s slide after the International Energy Agency (IEA) cast doubts over the past few months’ narrative of a tightening fuel market.

US West Texas Intermediate (WTI) crude was at US$55.10 per barrel, down 60 cents, or over 1%.

Kenanga Investment Bank Research said indicator-wise, the MACD remains below the Zero-line in a downward trend, and it has yet to see any signs of meaningful recovery in the near term. 

“Yesterday’s move further diminished the technical picture with the outlook biased on the downside. 

“Now that the index in the midst of testing the support level of 1,733 (S1), a decisive breakdown could see the index trending lower towards 1,727 (S2). Meanwhile, the resistance levels are 1,750 (R1) and 1,765 (R2),” said the research house.

Foreign funds were net buyers on Tuesday at RM181mil but local institutions were net sellers at RM196mil.

As for consumers Nestle rose RM1.38 to RM92.68 with 16,300 shares after it was added to the MISC Malaysia index with effect from Nov 30. Carlsberg fell 26 sen to RM15.16.

Dutch Lady added 40 sen to RM60.60 and BAT 22 sen to RM39.86.

Hap Seng Consolidated and Paramount added eight sen each to RM9.45 and RM1.81 while Muhibbah and Scientex added seven sen each to RM2.86 and RM8.80.

Genting Malaysia was up six sen to RM5 and Old Town also climbed six sen to RM2.59. 

PMB Tech lost 15 sen to RM3.90, Petron 14 sen lower at RM12.12, Petronsa Dagangan 12 sen to RM23.60 while KL Kepong was down 10 sen to RM24.40 and Lafarge five sen down at RM6.65.


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