FBM KLCI rises as daily new Covid cases show downtrend

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KUALA LUMPUR: The FBM KLCI advanced on Tuesday as it reopened after the long weekend as the number of daily new Covid infections showed a growing decline.

At 12.30pm, the key index was up 7.63 points to 1,586.08 as optimsim grew over the vaccination programme and the effectiveness of the current movement restrictions.

Trading turnover was healthy at 3.97 billion shares valued at RM2.31bil as investors took up fresh positions ahead of an expected economic reopening later this year.

Nevertheless, the index continues to trade within a narrow range as gains remain capped by the 1,600 psychological resistance overhead.

“Technically speaking, the FBMKLCI could remain under pressure after slipping under the 25-day SMA line while any intermittent technical rebound is expected to be halted by a negative sloping trend line (that stretches back to mid-December last year).

“Still, as bargain hunters may come in to cushion the market weakness, we reckon the benchmark index will probably oscillate – with a marginal downward bias – between our first support and resistance thresholds of 1,550 (S1) and 1,600 (R1) for the time being,” said Kenanga Research in its weekly technical outlook

There was an upturn in financial heavyweights with Maybank rising four sen to RM8.21, Public Bank adding four sne to RM4.24, Hong Leong Bank jumping 36 sen to RM18.90 and CIMB rising 11 sen to RM4.56.

Healthcare counters continues on their downtrend amid the declining demand outlook as global economies recover from the pandemic.

Top Glove fell eight sen to RM4.82 and Hartalega fell 25 sen to RM8.32. Supermax lost eight sen to RM3.84 as investors viewed its exclusion from the FBM KLCI as negative.

Meanwhile, Bursa Malaysia’s top traded stock was Serba Dinamik, which resumed its decline by another 12 sen to 64.5 sen on investor concerns over issues raised by its auditors.

Other top actives were Dnex up four sen to 84 sen and Hibiscus Petroleum gained six sen to 71.5 sen.

In Asian markets, equities were slightly lower ahead of central bank meetings that could reveal the direction of future monetary policy.

Japan’s Nikkei was down 0.1% while South Korea’s Kospi was flat. China’s main index dropped 0.5% and Hong Kong’s Hang Seng was down 0.3%. Australia’s ASX200 was up 0.2%.



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