KUALA LUMPUR: Bursa Malaysia spent the morning trading session vacillating between gains and losses before closing on a positive note at midday while ringgit climbs against the US dollar.
At 12.30 pm, the bellwether FBM KLCI ended the morning session 1.19 points firmer at 1,730.76. The index moved between a low of 1,725.95 and a high of 1,731.29 throughout the morning session. It opened 0.73 of-a-point lower at 1,728.84.
In the broader market, there were 418 gainers with 364 losers and 348 counters unchanged. Turnover stood at 1.36 billion shares worth RM926.9mil.
Ringgit was quoted at 4.0758, appreciating 0.07% at midday.
Hong Leong Investment Bank Research (HLIB) said the benchmark FBM KLCI has formed a flag formation after four days of sideways trading, coupled with a downtrend channel breakout.
“The MACD Line is recovering towards the zero level, while the momentum oscillators such as RSI and Stochastics are trending higher as well. The FBM KLCI may retest the resistance of 1,735-1,740. On the flip side, support will be pegged around 1,710-1,720,” it said.
HLIB said sentiments on the local front have been turning more bullish with the inflows of foreign funds.
“Hence, we think the buying interest and window dressing activities could lift the KLCI higher after the breakout yesterday. Oil and gas stocks may attract interests as the Brent crude oil prices trading near the US$64 level,” it added.
Meanwhile, Kenanga Research said overall, the technical outlook for the KLCI still remains bearish at this juncture, although it has turned gradually neutral over the past few days.
“The index is currently in the midst of retesting its 1,729 (R1) resistance. We believe it stands a higher chance of a breakout now as compared to previous attempts, given the improving displays of key indicators of late,” the research house said.
At Bursa Malaysia, Vitrox jumped 49 sen to RM5.92, Bursa Malaysia added 29 sen to RM9.99 while Carlsberg closed 22 sen higher to RM15.30.
Magno-Tech Industries was the top loser, shedding 45 sen, or 7.5% to RM5.56, its lowest since May 2017. MPI fell 44 sen to RM11.10 and Ajinomoto declined 30 sen to at RM20.20.
Among the heavyweights, Maybank fell one sen to RM9.24, Tenaga Nasional dropped four sen to RM15.44, Public Bank eased four sen to RM20.16, Digi slid six sen to RM4.78 while Petronas Dagangan declined four sen to RM24.50.
Reuters reported that oil prices rose on Wednesday as industry data showed a larger-than-expected drawdown in U.S. crude stockpiles, while expectations for an extended shutdown of a major North Sea crude pipeline also continued to bolster markets.
Brent crude was up 64 cents, or 1%, at $63.98 a barrel by 0413 GMT while U.S. West Texas Intermediate crude was up 42 cents, or 0.7%, at US$57.56 a barrel.
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