KUALA LUMPUR: Fund buying of Tenaga Nasional helped boost the FBM KLCI early Friday as the broader market showed more optimism, tracking the key Asian markets.
At 9.15am, the KLCI was up 4.17 points to 1,772.09. Turnover was 292.38 million shares valued at RM114.12mil. Advancers beat decliners 229 to 133 while 256 counters were unchanged.
Reuters reported Asian stocks inched higher on Friday and looked set to close a strong week on a positive note, while the euro slipped after the European Central Bank showed no signs of paring its stimulus programme.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1%, putting it on pace to end the week up 1.9 percent, which would be its best week in six. Earlier in the week, it hit an almost two-year high.
Reuters also reported oil prices stabilised on Friday but were on track for a second straight weekly loss on concerns that an OPEC-led production cut has failed to significantly tighten an oversupplied market. US West Texas Intermediate (WTI) crude oil futures rose 24 cents to US$49.21 per barrel while Brent added 15 cents to US$51.59 per barrel.
On the outlook for the KLCI, Kenanga Investment Bank Research said the index had, technical-wise, failed to ride on its recent bull momentum to cross above the psychological 1,770 mark on Thursday. The KLCI closed down one point or 0.06% to 1,767.92, while recording a mixed market breadth of 448 decliners and 448 advancers during the intra-day.
Foreign funds continued to pick up Malaysian equities, stock market data showed. Foreign funds were net buyers at RM267.7mil while retail investors were net sellers at RM24.7mil and local institutions net sellers at RM243mil.
“Daily RSI and Stochastic are also showing signs of rolling over from their oversold levels, suggesting that the bulls could take a breather soon.
“From here, if the KLCI fail to garner strength to close above the 1,770 mark, it could look to consolidate and close the week on a flattish note. Overhead resistance are seen at 1,776 (R1)/1,800 (R2), while supports are found at 1,743 (S1)/1,727 (S2),” it said.
Tenaga rose 12 sen to RM13.98 with 154,900 shares done. CIMB Equities Research is maintaining its Add call on Tenaga as it believes its earnings will not be affected by the rising fuel cost. The power giant is expected to report strong results in the second half ending Aug 31, 2017.
Dutch Lady
rose 53 sen to RM57.52, Vitrox gained 30 sen to RM5.98 while Southern Steel jumped 18 sen to RM1.57. MFCB added 17 sen to RM3.85 and the warrants 12 sen higher at RM2.16.
Plantations were the top losers but in razor thin trade. Genting Plantations fell 32 sen to RM11.10 and KL Kepong 26 sen lower at RM24.26 while TAHPS lost 12 sen to RM7.10. Matang rose one sen to 13.5 sen in active trade.
Tasek lost 18 sen to RM13.42, Perak Corp seven sen lower at RM1.91 and 7-Eleven was down six sen to RM1.59. Gamuda shed four sen to RM5.19.
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