KUALA LUMPUR: Blue chips wavered early Wednesday, tracking the cautious key Asian markets on geopolitical worries but analysts expected the firmer crude oil prices to provide some support to oil and gas stocks.
Trading volume was high with over 700 million shares done in the first hour, probably exceeding the one billion mark within the first hour on heavy trading volumes of lower liners and penny stocks again.
At 9.30am, the FBM KLCI was just up 0.04 of a point to 1,735.88. Turnover was 705.02 million shares valued at RM161.84mil. There were 249 gainers, 199 losers and 302 counters unchanged.
Reuters reported Japanese stocks fell more than 1% to their lowest level in over four-months on Wednesday morning as rising geopolitical tensions curbed risk appetite, while exporters dropped after the yen spiked to a five-month high.
The Nikkei 225 share average tumbled 1.3% to 18,504.81 in midmorning trade, the lowest since Dec. 7.
Hong Leong Investment Bank (HLIB) Research said the Dow may continue to be locked in a range bound consolidation mode within 20,400 to 21,000 levels as investors refocus on the 1Q17 earnings reporting season and geopolitical issues. Technically, there are early signs of mild recovery, it added.
“In sync with the external jitters and lack of fresh impetus, we anticipate that our local market to experience a healthy consolidation further with key supports at 1,705-1,720 after recent bullish rally from Nov 16.
“Although volatility remains, grossly oversold slow stochastic indicator and firmer oil price may help to cushion any heavy sell down. We anticipate trading interest to pick up within oil and gas sector,” HLIB Research said.
On Tuesday, foreign funds continued to be net buyers but at a slower pace of RM63.2mil while local institutions and retailers were net sellers at RM37.3mil and RM25.9mil.
Meanwhile, Reuters reported oil prices rose on Wednesday, putting crude futures on track for their longest streak of gains since August 2016, as Saudi Arabia was reported to be lobbying OPEC and other producers to extend a production cut beyond the first half of 2017.
Brent crude futures rose 17 cents to US$56.40 per barrel while US West Texas Intermediate (WTI) crude futures were up 16 cents at US$53.56.
BAT was the top gainer, up 36 sen to RM46.48 with 1,300 shares done. Bursa Malaysia rose 10 sen to RM9.65 while Telekom added seven sen to RM6.42.
Time dotCom added 10 sen to RM8.80 with 200 shares done, Hai-O nine sen to RM3.97, Turbo and Batu Kawan added eight sen each to 92 sen and RM19.38.
Glove maker Hartalega
gained seven sen to RM4.95 and Lafarge six sen higher at RM6.72.
MUI Industries fell two sen to 26 sen on profit taking with 70.3 million shares done.
HWGB, Hubline and PUC saw heavy trade while joining the fray were Sersol and AsiaPac.
Ajinomoto fell 24 sen RM17.50, Dutch Lady 12 sen to RM56.50, Cocoland four sen to RM2.57 and Carlsberg also four sen lower at RM14.96.
UMW fell 10 sen to RM5.95 and Sarawak Oil Palms eight sen lower at RM3.47. Goodway continued to come under some selling pressure, sliding 3.5 sen to 32.5 sen with 3.2 million shares done.
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