KLCI reverses losses at 11th hour after seeing red for most of the day
16 July 2019
Source: The Edge Financial Daily
KUALA LUMPUR: Th e FBM KLCI was lifted by last minute gains in index-linked counters, closing 0.17% higher yesterday after spending most of the day in the red.
The index had dipped into the red shortly after it opened and had spent the rest of the session slowly inching up towards positive territory, before closing 2.92 points higher at 1,672.37, lifted by increases in blue-chip stocks such as Genting Malaysia Bhd and Dialog Group Bhd.
The higher close was in line with gains seen in other Asian markets, supported by encouraging data from China.
Analysts are largely expecting the KLCI to fall this week,amid a lack of catalysts for the local market in the near term.
Hong Leong Investment Bank head of retail research Loui Low said bearish technical indicators are pointing to further consolidation this week and that any technical rebound to be capped.
“Key supports are situated at 1,655, 1,647 and 1,633 territory. Conversely, any technical rebound is likely to be capped at 1,680, 1,694 and 1,700 barriers,” wrote Low in a note.
Similarly, JF Apex Securities expects further decline in the KLCI in the near term, also seeing key support at 1,655.
A total of 3.01 billion shares worth RM1.65 million were crossed yesterday, with market breadth remaining negative as 378 counters closed lower against 369 gainers.— by Ahmad Naqib Idris