KUALA LUMPUR: Technology stocks advanced early Wednesday, underpinned by gains in KESM, MPI and Globetronics while the FBM KLCI continued to chalk up gains following the positive overnight close on Wall Street.
At 9.17am, the KLCI was up 6.05 points or 0.33% to 1,867.03. Turnover was 556.56 million shares valued atRM221.05mil. There were 484 gainers, 85 losers and 194 counters unchanged.
Kenanga Research said the market’s overall technical picture has improved significantly since the overreaction sell-down last week.
Following Tuesday’s move, the index has closed above its shorter-term 20-day SMA. Nonetheless, MACD indicator still remains in a downtrend, potentially reflecting the overhang of cautious sentiment of late.
“From here, the index could potentially resume its sideways movement between 1,840 and 1,880, where it had been hovering for most of the calendar year.
“That said, resistance of 1,880 (R1) has to be taken out decisively before the picture can be considered affirmatively bullish, seeing a higher resistance at 1,910 (R2). Conversely, a decisive break below 1,840 (S1) would be highly negative, potentially triggering a capitulation towards 1,800 (S2),” it said.
KESM jumped 88 sen to RM17.90, MPI added 26 sen to RM8.80 and Globetronics 19 sen higher at RM4.66. Unisem fell 10 sen to RM2.63.
Nestle added 40 sen to RM150.50 but with just 100 shares done and BAT rose 28 sen to RM23.60.
Top Glove gained 28 sen to RM10.26 while Magni-Tech was up 17 sen to RM4.85.
Oil prices edged higher on Wednesday, adding to steep gains in the previous session, as markets eyed an escalation of Middle East tensions after Europe's air traffic control agency warned of possible air strikes on Syria in the next 72 hours, Reuters reported.
Brent crude futures rose to US$71.09 per barrel at 0104 GMT, up 7 cents from their last close. Brent surged more than 3% on Tuesday to hit its highest level since late 2014, at US$71.34 a barrel. US WTI crude futures were at US$65.63 a barrel, up 12 cents from their last settlement.
Petronas Gas rose 24 sen to RM18.34 with 200 shares done and Petron 23 sen to RM8.87.
UMW Oil and Gas added one sen to 28.5 sen with 20.8 million shares done. Its warrants climbed 1.5 sen to 15.5 sen.
CIMB Equities Research has upgraded the company from Hold to Add on the back of a recent sharp sell-off in its share price, which it believes is unwarranted in view of its improving fundamentals.
Sapura Energy
rose two sen to 55.5 sen and Hibiscus three sen to 85.5 sen.
Profit taking saw Sime Plantation falling 12 sen to RM5.68 while Maxis lost six sen to RM2.44.
Power Root lost five sen to RM1.39. Kenanga Research has maintained outperform but with a lower target price of RM1.65 from RM2 as it revalues the stock as 15.0 times price-earnings following the de-rating of small cap stocks.
MBM Resources lost six sen to RM2.44 following the latest development in UMW Holdings’ takeover move.
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