KUALA LUMPUR: Hong Leong Bank led blue chips higher early Wednesday after its firm set of financial results, shoring the market up after a disappointing Tuesday, but analysts cautioned about investors selling into strength.
At 9.30am, the KLCI was up just 1.33 points or 0.08% to 1,707.88. Turnover was 468.98 million shares valued at RM223.35mil. There were 267 gainers and 156 losers.
Hong Leong Investment Bank (HLIB) Research said as the Trump-rally extended amid better-than-expected corporate earnings for 4Q16, it might anticipate that the Dow Jones Industrial Average may visit the resistance of 20,800-21,000.
Also, traders will continue to monitor the progress on economic agenda that will be revealed by Donald Trump in the near term.
“On our local front, tracking the bullish sentiments on Wall Street, coupled with recovering crude oil prices, we can expect mild buying interest within the O&G stocks.
“However, selling into strength strategy will be re-deployed across the board if the KLCI retests the 1,720-1,730 level as technical readings suggest that the key index is overbought,” it advised investors.
Hong Leong Bank rose 12 sen to RM13.62 and HLFG added eight sen to RM15.28.
Latitude Tree was the top performer as the furniture maker added 22 sen to RM5.89, Petron and Mercury gained 13 sen each to RM4.60 and RM1.39.
Aeon added 11 sen to RM2.40 and Ann Joo
nine sen higher at RM2.62.
AirAsia rose four sen to RM2.79 with 10.9 million shares done while its call warrants C49 added 0.5 sen to 28.5 sen.
Carlsberg was the top loser, down 32 sen to RM14.42 after its full year earnings dipped, Pharmaniaga fell 25 sen to RM4.80 after posting losses in the fourth quarter.
KL Kepong fell 10 sen to RM24.14 and Rhone MA was down 5.5 sen to 92 sen.
Reuters reported US oil prices held near seven-week highs on Wednesday after OpecP signalled optimism over its deal with other producers including Russia to curb production and clear a glut that has weighed on the market since 2014.
The US April crude contract, the new front-month future, was up three cents at US$54.36 a barrel at 0028 GMT. On Tuesday, the March contract expired up 66 cents, or 1.2%, at US$54.06, after peaking at US$54.68, the highest since Jan 3.
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