Bursa holds firm amid sustained interest in energy counters

  • Markets
  • Monday, 07 Dec 2020

KUALA LUMPUR: The FBM KLCI entered the lunch break slightly higher than last Friday's close as investors shrugged off Fitch Ratings' downgrade of Malaysia's credit rating and gained confidence in growing commodity prices.

At 12.30pm, the key index was up 0.66 points to 1,622.51.

Kenanga Research cautioned that despite the potential for the FBM KLCI to stay elevated for the time being, it remains vulnerable beyond the short term.

"Of concern now is a potential bearish signal arising from the divergence between the RSI and the FBMKLCI, whereby the RSI recently plotted lower highs while the index (up 3.8% since end-November) has continued to chart new highs.

"Our major support and resistance thresholds for the FBMKLCI are kept at 1,600/ 1,550 and 1,645/1,675, respectively," it said.

Amid the escalating investor interest in lower liners, trading volume on Bursa Malaysia was seen rising to 9.59 billion shares valued at RM4.06.

While crude oil prices took a step back on Monday amid growing coronavirus cases globally, there remained robust interest in energy counters as the recovery trend took root.

Energy counters seeing strong interest included Alam Maritim Resources rising 0.5 sen to 10 sen and Bumi Armada climbing 1.5 sne ot 38 sen on high trading volume.

Petron Malaysia jumped 86 sen to RM6.10 while Serba Dinamik continued its ascent by eight sen to RM1.97.

Meanwhile, Hengyuan, which has been on a steep climb in recent days, added another RM1 to RM6.56.

Top active counters on the market were Yongtai jumping 6.5 sen to 43 sen, Top Builders up five sen to 16 sen and Sapura Energy adding 0.5 sen to 13 sen.

Meanwhile, Asian markets entered a bout of profit-taking as fresh geopolitical tensions between the US and China surfaced.

According to Reuters, the US was preparing to impose sanctions on some Chinese officials over their crackdown on political opposition members in Hong Kong.

China's composite index and Japan's Nikkei were both down 0.7% while Hong Kong's Hang Seng slid 1.7%

Elsewhere, South Korea's Kospi rose 0.3% and Australia's ASX 200 gained 0.6%.
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Bursa Malaysia , FBM KLCI , equities


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