KUALA LUMPUR: There was a bounce on the home market on Monday following the sharp decline recorded final Friday because the FBM KLCI ended an eighth consecutive week of promoting.
At 9.25am, the FBM KLCI was up 7.57 factors to 1,496.45, staying just under the 1,500 psychological resistance.
Kenanga Research famous in its weekly technical word that there was sporadic shopping for curiosity on the native bourse in recent days as gainers in the marketplace outnumbered decliners in three of the 5 buying and selling days.
Howeever, it added that new move might interrupt this shopping for momentum over the approaching week.
“Overseas, the US Federal Open Market Committee is scheduled to fulfill Tuesday and Wednesday to deliberate on its financial coverage, presumably revealing key takeaways on the timing of its tapering of bond-purchase program and future rate of interest hikes,” it mentioned.
Meanwhile, there may be some investor curiosity spurred by a brand new itemizing on the Main Market by Aurelius Technologies in addition to the addition of Inari Amertron
as a constituent of the FBM KLCI efficient Dec 20.
From a technical view, the analysis home mentioned the FBM KLCI will in all probability present an upside bias after bouncing off a trough of 1,483.
“This could then set the stage for the formation of a double-bottom sample, presumably paving the best way for a gradual restoration.
“On the chart, a continuation of the technical rebound might push the benchmark index to aim to clear our first resistance barrier of 1,510 (R1) going ahead.
“On the opposite hand, its near-term draw back threat is predicted to be cushioned by our instant assist threshold of 1,475,” it mentioned.
On the FBM KLCI, most counters had been constructive after bouncing again from the earlier week’s sell-off.
Strong performances had been seen in Tenaga Nasional up 14 sen to RM9.30 and Petronas Chemicals rising 17 sen to RM8.59.
Meanwhile, financial institution shares had been additionally on the advance with Maybank gaining six sen to RM8.18, CIMB climbing seven sen to MR5.25, Public Bank inching one sen higher to RM4 and Hong Leong Bank including two sen to RM18.
On the broader market, there have been 251 gainers to 174 decliners. Top actives had been Dataprep down three sen to RM1.06, Asdion up two sen to fifteen sen and Impiana rising 0.5 sen to 9.5 sen.
