KUALA LUMPUR: DRB-Hicom and Malaysian Resources Corp Bhd (MRCB) advanced in early Wednesday trade as investors chased up the counters following fresh corporate news while the FBM KLCI managed to stage mild rebound.
At 9.20am, the KLCI was up 5.15 points or 0.29% to 1,787.85. Turnover was 603.93 million shares valued at RM253.09mil. There were 317 gainers, 154 losers and 276 counters unchanged.
Kenanga Investment Bank Research said despite the pullback on Tuesday, the technical charts show investors were willing to buy on dips.
“Overall, we believe that the technical outlook remains positive with key momentum indicators all in bullish convergence.
“We therefore expect a retest of the June’s high at 1,793 (R1). Further advancement will see resistance at 1,800 (R2) and 1,835 (R3) levels. Any pullback is likely to be limited to 1,750 (S1) and 1,735 (S2) support levels,” it said.
Local institutions were the net sellers at RM17.28mil while retail investors were net buyers at RM14.5mil and foreign funds at RM158.3mil.
MRCB rose six sen to RM1.22 in active trade. CIMB Equities Research is more upbeat on MRCB’s infrastructure and highway divestment prospects in 2018.
The research house said a mutual termination of the 100%-owned Eastern Dispersal Link (EDL) concession appears under way.
“Although the pricing is still unknown, the termination would reduce debt significantly, by some 25%,” it said.
DRB-Hicom, which scaled to a more three year high on Tuesday, added 19 sen to RM2.45. Analysts are upbeat on Proton Holdings Bhd as the national car company plots its return to the top with Chinese strategic partner Zhejiang Geely Holding Group Co Ltd in the driving seat.
Stronger crude oil prices propelled refiners Hengyuan and Petron higher. Hengyuan added 52 sen to RM18.48 and Petron 22 sen to RM14.12.
CCB fell the most, down 18 sen to RM2, BAT 14 sen lower at RM37.80, KESM 12 sen to RM19.50 and Nestle 10 sen to RM101.
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