Buying momentum continues in overheating market

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KUALA LUMPUR: Equities costs rallied larger because the rising constructive momentum continued to defy the overbought scenario on the home market.

With overseas funds persevering with to circulation into the native market, equities on Bursa Malaysia opened on a powerful constructive word on Thursday, setting the tone for a sixth straight day of features.

At 9.05am, the nation’s benchmark FBM KLCI was up 8.22 factors to 1,611.42 with power and plantation shares main the rally.

However, analysts warning that the overheating market might quickly result in profit-taking and restrict the near-term upside.

“Despite the sustained overseas fund shopping for curiosity, profit-taking ought to test features given the aggravated overbought momentum sparked by the current rally, and warning over surging inflation forcing extra aggressive US rate of interest hikes and unresolved UN/Russia geopolitical tensions.

“Increased profit-taking resistance will doubtless stall additional near-term upside in the direction of 1,620, with subsequent harder hurdles seen at 1,640 and 1,680,” stated TA Securities Research in a report.

Following yesterday’s features, the analysis agency lifted its speedy assist degree to 1580 with 1,550, 1,520 and 1,500 pegged as stronger helps.

Jumping larger on the open, Kuala Lumpur Kepong rose 82 sen to RM26.42 on the again of postive earnings introduced late yesterday.

Sector friends Sime Darby Plantation climbed 12 sen to RM4.76 whereas IOI added six sen to RM4.40.

There was additionally constructive worth motion in telcos amid ongoing 5G developments, Axiata added six sen to RM3.96, Digi grew six sen to RM4.26 and Maxis was unchanged at RM4.52.

Meanwhile, client counters continued their climb led by Heineken Malaysia up RM1 to RM21.36, Carlsberg gaining 80 sen to RM21 and Nestle rising 70 sen to RM135.20.

Top actives of the day had been DNeX falling one sen to RM1.26, VC up one sen to eight sen and SMTrack down 0.5 sen to 22 sen.



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