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KUALA LUMPUR (December 7): The FBM KLCI managed to make a gain of 0.06% or 1.04 points today, rising to 1,622.89.
Malaysia’s general index had opened slightly higher at 1,622.94 and reached its intraday high of 1,627.59 at 4.20pm, but trimmed its gains at the close.
Vincent Lau, vice president of Rakuten Trade Research, noted that the small profit was the result of window dressing activities.
The main winners among FBM KLCI were Petronas Chemicals Group Bhd, Genting Bhd and Hong Leong Financial Group Bhd.
In terms of total trading volume at present, the local exchange registered the trading of 16.49 billion shares worth 7.23 billion ringgit. This trading volume is the highest seen since November 17, 2020.
“Today’s trading volume was due to increased participation from retail investors, which is expected to be vibrant at least in the short term,” he said.
The main assets included Yong Tai Bhd, Top Builders Capital Bhd and PA Resources Bhd. Meanwhile, today’s top value gainers were British American Tobacco (M) Bhd, Heineken Malaysia Bhd, and Hengyuan Refining Company Bhd, while Nestlé (Malaysia) Bhd, Fraser & Neave Holdings Bhd and PPB Group Bhd declined the most. .
For the most part, the Asian indices were in the red. In Japan, the Nikkei 225 was down 0.76% or 203.8 points to 26,547.44. Meanwhile, the Shanghai Composite closed lower at 3,416.6 after falling 0.81% or 27.98 points, while the Hong Kong Hang Seng closed the trading day with 1.25% or 334.94. points below 26,500.98. However, in South Korea, the Kospi rose 0.51% or 13.99 points to 2,745.44.
The declines seen in regional markets followed reports that the United States is preparing to launch sanctions on some Chinese officials for the crackdown in Hong Kong.
“Yet other emerging Asian stock markets retreated from highs hit by vaccine optimism and the $ 908 billion aid bill in the United States. Reuters reported that the administration of President Donald Trump was preparing sanctions for some Chinese officials for the crackdown in Hong Kong “, Reuters reported today.
In a note today, TA Securities Research said a correction in profit-taking for the FBM KLCI is likely this week given the “increasingly overbought technical momentum seen in the daily and weekly slow stochastic indicators after the FBM KLCI rose to trade at a new month high ”.
This would be particularly the case after Fitch Ratings downgraded Malaysia last Friday (December 4), it added.
That said, this correction is expected to be brief and necessary in order to neutralize excessively overbought conditions and encourage bargain hunting, while economic recovery and vaccine-related games should prevail given the strong buying momentum observed. in the broader market, TA Securities said. Investigation.
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