Monday, August 23, 2010

FBM KLCI holding steady above 1,400

KUALA LUMPUR: The FBM KLCI extended its gains for the seventh day on Monday, Aug 23 and rose to its highest level since Feb 20, 2008 when it crossed the psychologically crucial 1,400 level, lifted by gains including at Maybank and CIMB.

At 10am, the benchmark index was up 7.18 points to 1,402.20. Gainers led losers 212 to 187, while 185 counters traded unchanged. Volume was 158.86 million shares valued at RM162.58 million.

Kenanga Investment Bank Bhd Research said the FBM KLCI continued to show exceptional strength fueled by liquidity and expectations of better corporate earnings.

'While we had retained a positive bias on the market, market's recent strength was nothing short of remarkable especially in the face of global economic uncertainties driven by less than positive economic data from the industrial nations,' it said in a note Aug 23.

The research house said that in the near term, while technically bias still given the continuing trade above the resistance lines and moving averages, the slightly elevated RSI into the overbought territory could warrant some cautious trade in the near term.

'While the weakening technicals from the Dow could act as a cap to any substantial upside to our local market in the near term, the expected strong corporate earnings plus strong liquidity should however help to cushion any substantial downside risk.

'For the near term, expect FBM KLCI to see resistance at the 1,407 level with 1,436 as next. Support meanwhile can be found at 1,383 with 1,375 as next,' it said.

Maybank was the top gainer at mid-morning and was up 19 sen to RM8.32; Mudajaya added 17 sen to RM4.33, CIMB was up 15 sen to RM7.85, Sunway City and Aliran Ihsan Resources added 14 sen each to RM3.87 and RM1.45, while Kulim rose 10 sen to RM8.40.
DFZ Capital, Ta Ann and Top Glove added 13 sen each to RM3.74, RM5.70 and RM6.18, respectively.

The top loser was Shell that fell 20 sen to RM10.60; Aeon lost 13 sen to RM5.07, DiGi fell 10 sen to RM24.58, Hong Leong Bank and PPB lost six sen each to RM8.84 and RM16.90, while Naim fell five sen to RM3.30.

Talam was the most actively traded stock with 18.5 million shares done. The counter was unchanged at 10.5 sen.

Other actives included SAAG, Genting Malaysia, Maybank and newly-listed Focus Point. Focus Point was down half a sen to 38.5 sen with 5.69 million shares done.




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