KUALA LUMPUR: Blue chips staged a mild rebound early Tuesday, putting trading for June on a firmer footing, aided by gains in CIMB, IHH, Dialog and RHB Bank but Serba Dinamik hit limit-down for the second day.
At 9.10am, the KLCI was up 3.8 points or 0.24% to 1,587.35. Turnover was 621.94 million shares valued at RM297.82mil. There were 283 gainers, 188 losers and 273 counters unchanged.
On Monday, the government unveiled the Pemerkasa Plus economic stimulus package in a bid to support the healthcare sector, businesses and Malaysians as the country heads into a total lockdown starting Tuesday
Packed with a number of initiatives to alleviate the people’s burden and assist both the public and private sectors as the nation battles the onslaught of the Covid-19 pandemic, the RM40bil aid package with a RM5bil direct fiscal injection from the government is a continuation of several similar economic stimulus packages worth a total of RM340bil since the pandemic started last year.
Meanwhile, TA Securities Research expects the local market to trade sideways pending further leads from the government with regard to acceleration in vaccination rollout and stimulus measures to cushion the adverse economic impact from the current full lockdown.
On the KLCI, it said the immediate support will be from Monday's low of 1,568, followed by the recent pivot low of 1,552, with better supports seen at 1,540 and 1,520.
“Immediate resistance stays at 1,600, with more formidable resistance expected from the recent highs of 1,623,1, 635 and1,642, ” it said.
At Bursa on Monday, foreign funds were net buyers at RM60.5mil and local retail investors at RM6.2mil but local funds were net sellers at RM66.7mil.
Among the KLCI stocks, HLFG rose 46 sen to RM18, CIMB 13 sen to RM4.41, IHH eight sen to RM5.38, RHB four sen to RM5.34 and Dialog three sen to RM2.92.
However, profit taking saw TM fall seven sen to RM6.08, Supermax six sen to RM4.07, Sime Darby four sen to RM2.25 and Maybank three sen to RM8.15
Among the chip makers, MPI rallied 32 sen to RM39.42.
However, Serba Dinamik hit limit-down for the second day, plunging 33.5 sen to 79.5 sen in active trade but KPower rose seven sen to RM1.15 and SCIB five to 95.5 sen.
On the external front, Bloomberg reported Asian stocks were steady early Tuesday as traders await gauges of manufacturing activity and key American jobs data later in the week to help assess the economic outlook.
Shares fluctuated in Japan, South Korea and Australia. S&P 500 and Nasdaq 100 futures edged lower following a US holiday.
The offshore yuan trimmed a retreat sparked by China forcing banks to keep more foreign currencies in reserve for the first time in over a decade, its most substantial move yet to rein in a surging currency, Bloomberg reported.