KUALA LUMPUR: Penny oil and gas stocks, especially Sumatec saw very heavy trade early Tuesday, riding on the strong crude oil prices but the overall broader market was cautious.
At 9.14am, the FBM KLCI was up 0.69 of a point or 0.04% to 1,826.60. Turnover was 732.27 million shares valued at RM163.67mil. There were 167 gainers, 209 losers and 249 counters unchanged.
Maybank Research said the recent correction dragged the KLCI from a high of 1,840 to a low of 1,812. For the time being, it believes the benchmark index will head into a consolidation mode, it said.
“Our short-term cautious mood is also reflected by the easing technical landscape. Stochastic has staged a dead cross while MACD is losing momentum.
“Therefore, another down leg may be forthcoming, as it seeks to complete the current minor corrective wave. Support is seen at 1,793-1,812,” said the research house.
Asian shares slumped on Tuesday, as miners were pressured by weaker Chinese iron ore prices, while the euro stood near a three-year peak on rising expectations that the European Central Bank could pare its monetary stimulus.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2% in early trade. US markets were closed for a public holiday on Monday. Australian shares slipped 0.5%.
Sumatec was the most active with 274 million shares done, up two sen to 12.5 sen, its warrants added 1.5 sen to 5.5 sen while Perisai gained one sen to six sen.
UMW Oil and Gas rose 0.5 sen too 42 sen but Hubline fell 1.5 sen to 13.5 sen.
Refiners Hengyuan and Petron were among the top losers for the second day on profit taking after the stellar rally.
Hengyuan fell 82 sen to RM14.32 and Petron 72 sen to RM12.06. Hengyuan’s call warrant also hogged the losers’ list.
Nestle was the top gainer, up RM1.70 to RM105.90, Top Glove added nine sen to RM9, CCM six sen higher to RM2.19 while Litrak and Genting added five sen each to RM5.65 and RM9.38.
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