KLCI opens higher but drifts lower thereafter


KUALA LUMPUR: The FBM KLCI opened higher but drifted lower thereafter.

At 9.09am, the FBM KLCI was 3.26 points lower at 1,599.17 after opening marginally higher at 1,606.14.

TA Securities said the recovery in technical momentum and trend indicators following last week's moderate recovery on the FBM KLCI implies there could be further sustainable gains toward this month-end.

The research house said the higher probability for first quarter window-dressing gains and rising optimism over the imminent economic reopening and endemic phase come April 1 should augur well for investor sentiment to turn more positive.

As such, it said the economic reopening plays and higher demand expectations should further lift stocks in the construction, property, technology, oil and gas and rubber glove sectors.

“As for the index, immediate support remains at 1,580, with 1,560, 1,540, 1,520 and the 1,500 psychological level as stronger supports.

“Crucial chart supports remain at 1,470 and 1,452, the 50% Fibonacci Retracement (FR) of the 1,207 low of March 2020 to the Dec 2020 peak of 1,695, which matched the Nov 2020 low.

“Immediate resistance will be at 1,620, with 1,640, 1,660 and 1,680 as stronger upside hurdles,” TA said.

Mercury Securities expects a pullback in Malaysian equities on profit-taking following recent strength in the market.

On Bursa Malaysia, Malaysian Pacific Industries shed 90 sen to RM38, Heineken lost 26 sen to RM22.36 and Petronas Dagangan fell 26 sen to RM21.74 and Pentamaster eased 10 sen to RM3.83.

Aeon Credit rose 12 sen to RM14.76, Alliance Bank Malaysia gained 11 sen to RM3.72, Oriental Holdings added 11 sen to RM6.10 and Harrisons climbed 11 sen to RM5.

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KLCI , Bursa Malaysia , FBM KLCI

   

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