FBM KLCI advances on window-dressing activity

KUALA LUMPUR: Bursa Malaysia opened the week higher after a long weekend, bolstered by window-dressing activity.

At 9.26am, the FBM KLCI added 2.06 points to 1,643.59 after opening 1.06 points higher at 1,642.23.

There were 416 counters advanced while 327 counters declined. Turnover stood at 1.8 billion shares worth RM594.78mil.

TA Securities said since short-term momentum indicators on the FBM KLCI have fully neutralised overbought conditions following the recent two-week profittaking correction from a 21-month high, blue chips should revert to base building mode to reinforce higher support platform for more sustained uptrend going forward.

It said the high probability for late window-dressing action in the last trading week of the year should provide a boost to sentiment this week.

“Immediate uptrend supports cushioning downside for the index will be from the rising 30-day, 50-day and 100-day moving averages now at 1,624, 1,578 and 1,555 respectively.

“Immediate resistance remains at 1,680, with tougher hurdles from the recent peak of 1,695, and next at 1,715, the 123.6% Fibonacci Projection (FP) of the 1,207 to 1,618 upswing,” TA said.

“On stock pricks, oil and gas, construction and technology related stocks such as Dialog, Gadang, Globetronics, Hibiscus, Inari, MRCB, Sunway Construction and UEM Sunrise should continue to attract bargain hunters on further weakness ahead of eventual recovery,” it added.

Meanwhile, Malacca Securities believes the market may still focus on window dressing activities, but upside could be limited given the new Covid-19 variant that is haunting the reopening of the major economies.

It added that market participants may lookout for trading ideas along the construction and building materials sectors on the back of ongoing and new infrastructures projects that will be expected moving into 2021 as well as rising commodities.

“We believe trading interest will hover around construction, building materials as well as plantation counters.

“We expect glove manufacturers to have some support over the near term as they might benefit from the slower-than expected reopening of economic activities due to the new Covid-19 variant,” Malacca Securities said.

On Bursa Malaysia, Kpower topped the gainers list, adding 54 sen to RM7.77, Greatech Technology rose 31 sen to RM9.63, CN Asia Corp gained 30 sen to RM1.32 and Public Bank advanced 30 sen to RM20.86.

Among the losers, Batu Kawan fell 20 sen to RM17.50, Nestle shed 20 sen to RM139 and Supermax declined 19 sen to RM6.62.

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