Panasonic Manufacturing, MPI top gainers in early trade

KUALA LUMPUR: The FBM KLCI extended its gains early Thursday, underpinned by gains in Kuala Lumpur Kepong (KLK), and Hong Leong Financial Group (HLFG) while Panasonic Manufacturing and Malaysian Pacific Industries (MPI) emerged as the major gainers.

At 9.08am, the 30-stock index was up 2.30 points, or 0.15% to 1,491.18. The index opened two points higher at 1,490.80.

Market sentiment was supported by the overnight gains on Wall Street after Federal Reserve Chair Jerome Powell signalled slower interest rate hikes going forward.

Overnight, the Dow Jones Industrial Average closed up 737.24 points, or 2.18%, to 34,589.77. The tech-heavy Nasdaq Composite jumped 4.41% to 11,468.00 while the S&P 500 added 3.09% to 4,080.11.

TA Securities said trading conditions may remain choppy in the near-term, as investors monitor the domestic political situation amid hopes for an effective unity government and regional recovery momentum from China's gradual economic reopening.

“Immediate index supports are at 1,460 and 1,450, with better supports from 1,420 and 1,400.

“Immediate resistance remains at 1,512, with next resistance seen from the August high near 1,528, then 1,550 and 1,570,” it said.

Rakuten Trade reckoned the recent news to revive the nation’s economy may shift interest to the construction sector as the multiplier effect is deemed the highest to spur domestic economic activities.

It added that the easing of restrictions in Guangzhou and Chongqing may also improve regional sentiment thus it reckons the index to trend between the 1,485-1,500 range today.

As for crude oil, Brent crude ended above US$85 per barrel attributed to a lower than expected inventory level.

At Bursa Malaysia, Panasonic Manufacturing was the top gainer, adding RM1.10 to RM24. MPI rose RM1.08 to RM28.88 and Dutch Lady advanced 46 sen to RM31.

Nestle fell RM2.10 to RM136.80, PETRONAS Dagangan eased 50 sen to RM23.28 and Apex declined 18 sen to 80 sen.

Among the KLCI constituent stocks, KLK rose 42 sen to RM21.32, Inari added 11 sen to RM2.77, Sime Darby Plantation gained eight sen to RM4.34 and HLFG climbed six sen to RM18.58.