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Friday, December 15, 2017

Market Daily Report: KLCI retreats after three-day rise as investors take profit

KUALA LUMPUR (Dec 15): The FBM KLCI came down by as much as 0.76% or 13.35 points today as investors took profit after three days of gains.

At market close, the benchmark index pared some losses to close at 1,753.07, down 5.93 points or 0.34% from yesterday.

"After rising by almost 40 points since Monday's close, we saw profit-taking activities across the board today," said Malacca Securities Sdn Bhd senior research analyst Kenneth Leong.

"This is in tandem with key regional indices, which were affected by uncertainties over US tax overhaul implementation," Leong told

He expects the KLCI to move between 1,740 and 1,760 points in the near term.

Asian shares erased earlier modest gains with sentiment dented by Wall Street's weakness on concerns about the progress of US tax reform, though regional stocks remain on track for a weekly rise, Reuters reported.

Japan's Nikkei fell 0.62% and Hong Kong's Hang Seng Index dropped 1.09%, while South Korea's Kospi rose 0.51%.
On the local front, total trading volume was 2.34 billion shares worth RM3.51 billion. Losers led gainers by 475 to 414, while 386 counters remained unchanged.

Notable losers included Genting Bhd, Hap Seng Consolidated Bhd and Hong Leong Bank Bhd, while top gainers included Hengyuan Refining Company Bhd and Hartalega Holdings Bhd.
PUC Bhd was the most actively traded counter, with 126.31 million shares done.

Source: The Edge

Thursday, December 14, 2017

Market Daily Report: FBM KLCI up 1.23%; Bursa finance index rises 2.38%

KUALA LUMPUR (Dec 14): The FBM KLCI rose 21.34 points or 1.23%, lifted by banking stocks amid fund managers' year-end window dressing.
At 5pm, the KLCI closed at 1,759 points as Public Bank Bhd, Hong Leong Bank Bhd and Hong Leong Financial Group Bhd ended among Bursa Malaysia top gainers. Bursa Malaysia's finance index rose 387.95 points or 2.38% to 16,656.80 points.

Across Bursa Malaysia, there were 540 gainers versus 331 decliners. Trading volume was 2.43 billion shares worth RM3.26 billion.

CIMB Investment Bank Bhd analyst Nick Foo Mun Pang told "Year-end window dressing will continue to lift KLCI in the near term. Market breadth was very strong today as well. Our immediate (KLCI) resistant level is 1,770 points, immediate support is 1,750 points."

"The sentiment was good as well, especially in the afternoon after The World Bank upgraded (its 2017) Malaysia gross domestic product (growth forecast) to 5.8%," Foo said.

Earlier today, analysts and remisiers said Malaysian banking shares rose on expectation that Bank Negara Malaysia will raise interest rates following the US Federal Reserve's interest rate hike on Wednesday.

Reuters reported that the US central bank raised rates by a quarter of a percentage point to a range of 1.25% to 1.5%. It was the third rate hike this year. But the Fed's forecast of three additional rate increases in 2018 and 2019 was unchanged from its projections in September.

In Malaysia, SJ Securities Sdn Bhd senior remisier Goh Kay Chong told that technical charts are showing that funds are buying Malaysian banking shares following the US interest rate increase as they expect Bank Negara to follow the US's footsteps.

"That way, Public Bank and all other local banks will benefit from the higher interest rate," Goh said.

Source: The Edge