Tenaga underpins KLCI’s gains early Wednesday

KUALA LUMPUR: Tenaga Nasional underpinned the FBM KLCI’s rebound early Wednesday, tracking the firmer key Asian markets but investors could be wary due to  the weaker overall technical outlook for the 30-stock index. 

At 9.29am, the KLCI was up 4.24 points or 0.25% to 1,718.66. Turnover was 257.75 million shares valued at RM135.26mil. There were 253 gainers, 174 losers and 219 counters were unchanged.

Reuters reported Asian shares rose and the dollar held firm on Wednesday after Wall Street shot to record peaks amid signs of progress on US tax cuts, upbeat economic data and bank-friendly comments from the would-be head of the Federal Reserve.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1% in early trade. Japan's Nikkei added 0.5%, while Australia's main index rose 0.7%.

Kenanga Investment Research said  due to the current overall technical picture, the KLCI was biased on the downside and following Tuesday’s move, expect it to break below the support level of 1,714 (S1) soon. 

“Key indicators remain in negative state with chart pattern doesn’t provide any meaningful signal of potential bullish reversal. 

“From here, any further weakness, a strong psychological barrier at 1,700 (S2) could provide another support level. Conversely, should market improves, upside resistances can be found at 1,734 (R1) and 1,750 (R2),” it said.

Among the consumer stocks, Nestle jumped RM3.70 to RM98.86 ahead of inclusion into  the  MSCI Malaysia index. Dutch Lady added 60 sen to RM60. However, BAT fell 24 sen to RM36.62 and Carlsberg lost 18 sen to RM14.82.

Tenaga rose 16 sen to RM15.14, PPB Group and Southern Steel 14 sen each to RM16.78 and RM2.35 while Hengyuan gained 12 sen to RM10.52. Petronas Dagangan 10 sen higher at RM23.94.

MPI fell 14 sen to RM12.96 and UMW seven sen lower at RM5.23.