Monday, December 13, 2010

FBM KLCI rebounds in early trade

KUALA LUMPUR: The FBM KLCI advanced in early trade on Monday, Dec 13 in line with the gains at most key regional markets on the back of firmer closing at Wall Street last week and data from China over the weekend showing the country's'' inflation flew past forecasts to a 28-month high.

China's central bank also raised lenders' requirements for the third time in a month.

The market was also heartened by U. data showing a rise in consumer sentiment to six-month highs and a 3.2% rise in exports, figures that pointed to a firmer economic recovery, according to Reuters.

At 10am, the FBM KLCI was up 4.34 points to 1,511.62, lifted by gains including at Maybank, Axiata, MMcCorp, Genting Malaysia, Tenaga and KLK.

Gainers led losers by 281 to 167, while 189 counters traded unchanged. Volume was 267.09 million valued at RM254.66 million.

At the regional markets, the Shanghai Composite Index was up 1% to 2,869.40, Taiwan's Taiex added 0.45% to 8,757.72, Singapore's Straits Timex Index rose 0.16% to 3,190.46, Japan's Nikkei 225 was up 0.14% to 10,226.64, Hong Kong's Hang Seng Index opened 0.9% higher'' 23,362.32 while South Korea's Kospi was down 0.03% to 1,985.57.

RHB Research Institute Sdn Bhd in a note Dec 13 said that in line with its expectation, market players took the opportunity of recent rallies to unload more stocks on last Friday on Bursa Malaysia, prompting a record of a huge bearish candle on the chart.

The chart pattern also indicated the tough resistance at the 1,524 level and the all-time high level at 1,531.99 remained a firm cap on the benchmark FBM KLCI's upside, it said.

The research house said that although the rising 10-day Simple Moving Average (SMA) had reached the 40-day SMA at 1,500 on Friday, it had failed to crossover to indicate a stronger medium-term outlook going forward.

'If the index continues to retreat this week, and breach the psychological level of 1,500, the 10-day SMA might ease together, hence failing its current attempt to stage further upside ahead.

'For technical trading strategy, we continue to advocate 'selling into strength' until and unless the benchmark index removes the key overhead hurdle at 1,524 and 1,532,' said RHB Research.

On Bursa Malaysia at mid-morning, the gainers included BAT that added 46 sen to RM46.50, MBM Resources up 23 sen to RM3.46, Kulim added 18 sen to RM12.58, Genting PLANTATION []s and MTD Capital rose 16 sen each to RM8.62 and RM8, MMC Corp added 15 sen to RM2.92, Parkson gained 14 sen to RM5.77, HLFG advanced 13 sen to RM8.956.

Meanwhile, Maybank rose five sen to RM8.50, Axiata added four sen to RM4.78, Genting Malaysia up six sen to RM3.33, Tenaga added three sen to RM8.63 and KLK rose eight sen to RM21.58.

Among the actives, Petra shares and warrants rose after The Edge weekly reported that SAPURACREST PETROLEUM BHD [] had hired investment bankers to look into a potential asset expansion exercise that included the possibility of a tie-up with or takeover of the loss-making Petra.

Petra shares added six sen to 92.5 sen while the warrants added 6.5 sen to 43 sen.

Other actives included Olympia, DRB-Hicom shares and warrants, Landmarks and Hovid.

Decliners in early trade included Kwantas, DKSH, Gopeng, Petronas Chemicals, Tong Herr and Carlsberg.


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