Retail buying supporting broad market, DRB-Hicom in focus

KUALA LUMPUR: Blue chips managed to recoup part of their losses early Thursday while the broader market was firmer with retail buying interest seen in lower liners including DRB-Hicom as sentiment was boosted by a rebound in crude oil prices.

At 9.43am, the KLCI was up 4.65 points or 0.28% to 1,653.15. Turnover was 380.22 million shares valued at RM153.16mil. There were 214 gainers, 140 losers and 255 counters unchanged.

Hong Leong Investment Bank (HLIB) Research said the overnight rebound in Dow and oil prices may provide a temporary lift to KLCI on Thursday but any rebound is likely to be short-live amid internal and external uncertainties.

“We reiterate our short term view that KLCI is likely to hover in range bound consolidation within the 1,639 and 1,675 band, given the lack of fresh re-rating catalysts, ongoing August reporting season and low oil prices,” it said.

On Wednesday, foreign funds were net sellers at –RM56.76mil while local retailers were net buyers at RM54.53mil and local institutions at RM2.23mil

Reuters reported investors are counting on the Bank of England to cut interest rates to a record low 0.25% later on Thursday to support an economy that has slumped since the Brexit vote.

Asian shares firmed on Thursday after a rebound in oil prices from four-month lows helped to lift Wall Street shares. 

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% in early trade, led by gains in resource shares, recouping some of its 1.5% losses on Wednesday. Japan's Nikkei rose 0.6 percent from Wednesday's three-week lows.

Brent crude futures rose 1% on Thursday to US$43.55 per barrel, extending its recovery from Monday's four-month low of US$41.41 while US crude futures gained 1.2% to US$41.33 per barrel.

At Bursa Malaysia, BAT was the top  gainer, up 30 sen to RM49.80 while Heineken added 24 sen to RM18.20 and F&N 10 sen higher at RM26.20. Dividend stock Panasonic Malaysia added 14 sen to RM38.30 with 200 shares  done.

Mesiniaga surged 19 sen to RM1.04, HL Industries added 13 sen to RM9.13 and Globetronics nine sen higher at RM2.84.

RHB Bank recouped part of the recent losses to add 10 sen to RM4.90.

DRB-Hicom rose six sen to RM1.08.  Its call warrants, DRB-Hicom C19 and C20 rose two sen each to 13 sen and 12 sen while C20 was up 0.5 sen to 4.5 sen.

FGV fell seven sen to RM1.90 on profit taking while its call warrants C15 fell two sen to 19  sen in active trade.

Apex Healthcare was the top loser, down 19 sen to RM3.75, Petronas Dagangan lost 10 sen to RM23.24 and Bursa five sen to RM8.90.