Bursa broadly higher, riding on positive key Asian markets

market open

KUALA LUMPUR: Bursa Malaysia was broadly higher in early Friday trade as market sentiment was boosted by overnight rally on Wall Street but the FBM KLCI faces significant resistance to bounce past the key 1,600 level.

At 9.30am, the KLCI was up 4.45 points or 0.28% to 1,596.970. Turnover was 602.36 million shares valued at RM368.74mil. Gainers beat losers 422 to 190 while 377 counters were unchanged.

Bloomberg reported Asian stocks pushed higher Friday after a rally on Wall Street spurred by robust corporate earnings that took some of the focus away from inflation risks in the global economy.

Equities rose in Japan, South Korea and Australia. U.S. futures edged up following the S&P 500’s best day since March.

Results from major U.S. banks beat estimates, while chipmaker Taiwan Semiconductor Manufacturing Co. predicted a bullish year-end. Sentiment was boosted as U.S. producer prices advanced at the slowest pace this year and initial jobless claims fell, Bloomberg reported.

As for Bursa on Thursday, foreign funds were net buyers at RM80mil while local funds remained net sellers at RM47.2mil and retail investors RM32.8mil.

TA Securities Research said the local market should pause to consolidate gains ahead of the weekend,and pending further domestic catalysts after recent economic reopening optimism following travel resumption and reopening of borders.

"Significant index resistance remains at the recent high of 1,605, while 1,620 and1,640 should prove to be tougher upside hurdles. Immediate chart support is retained at 1,550, next will be 1,520, with 1,500, 1,470 and 1,452, the 50% Fibonacci Retracement (FR) matching the Nov 2020 low, as key supports to watch," it said.

However, Rakuten Trade was more upbeat that despite the profit taking by local funds and retailers, “we reckon market undertone remains steady”.

The research house believes the KLCI to possibly stage a mild rebound today and expect the index to trend within the 1,590-1,600 range today.

At Bursa, tech related stocks climbed. Genetec rose RM1.88 to RM44.32, MPI 48 sen to RM44.98, PMBTech 26 sen to RM14.32 and Vitrox 22 sen to RM19.88, SAM Engineering and UWC 12 sen higher at RM22.26 and RM5.96.

Other gainers were Dutch Lady, 52 sen to RM22.40, Batu Kawan 50 sen to RM22.40 while Milux added 12 sen to RM1.09.

Brahims was the most active, jumping six sen to 52 sen.

BSL Corp shed eight sen to RM2.48, Hartalega seven sen to RM6.15 and Complet six sen lower at RM1.91.

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