KUALA LUMPUR: Blue chips notched slight gains early, with the FBM KLCI setting its sights on the 1,730 resistance level, with Petronas stocks and Maybank providing the support.
At 9.29am, the KLCI was up 0.97 of a point to 1,729.63. Turnover was 441.46 million shares valued at RM183.19mil. There were 247 gainers, 159 losers and 278 counters unchanged.
Kenanga Investment Bank Research said despite attempting to breach above the 1,730 mark, the KLCI was unable to sustain its gains above the aforesaid level due to some emerging profit-taking activities.
“Chart-wise, a spinning top candlestick was formed at the trend channel resistance line after the strong surge two days ago, signifying investors’ indecision over the market direction.
“Daily RSI and Stochastic are also not encouraging at this point of time, depicting a slight downtick to reflect some selling pressure on the benchmark index,” it said.
Kenanga Research said the KLCI needed to convincingly break out above the key 1,730 (R1) (above the trend channel) to resume its uptrend trajectory towards 1,744 (R2) next.
However, if it is unable to break through the 1,730 (R1) level, this would result in the underlying taking a consolidation breather towards its trend channel support line, where supports zone are tied at 1,720 (S1) followed by 1,710 (S2).
Reuters reported oil futures fell in Asian trade on Wednesday after industry data pointed to a potential ninth straight week of inventory builds, renewing concerns about an oversupply of oil despite output curbs by Opec and non-Opec members.
US West Texas Intermediate (WTI) crude fell 32 cents to US$52.82 a barrel while Brent futures fell 29 cents to US$55.63.
Petronas Dagangan rose 36 sen to RM24.70 and Petronas Gas gained 12 sen to RM19.72. Maybank rose five sen to RM8.85.
Hap Seng gained nine sen to RM9.17 on plans to dispose of its logistics unit to pare down its debt while Genting Plantations added six sen to RM11.46.
However, BAT fell 14 sen to RM49.06, Uli Corp nine sen lower and APM shed six sen to RM3.60.
Among plantations, IOI Corp and KL Kepong lost six sen each to RM4.75 and RM24.52.
CIMB shed four sen to RM5.41 on profit taking after the recent rally.
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