KLCI edges up in early trade, select blue chips lift

-A +A

KUALA LUMPUR (Sept 29): The FBM KLCI edged up in early trade in line with higher close at Wall Street last Friday, lifted by select blue chips.

At 9am, the FBM KLCI added 0.55 points to 1,841.05.

The top gainers included Press Metals, HLFG, RHB Capoital, Eco World, My E.G., Coastal Contracts, Seven Eleven Malaysia. Sasbadi and GHL Systems.

Regionally, the dollar hit a four-year peak against a basket of currencies in early Asian trade on Monday, bolstering Japanese shares, but other Asian shares shrugged off Friday's Wall Street rebound in the face of political unrest in Hong Kong, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 percent, hitting a 20-week low, it said.

Affin IB vice president and head of retail research Dr Nazri Khan said that going forward, he expects Bursa Malaysia to see bargain-hunting interest ahead of the month end closing and ahead of the much-awaited Budget 2015 slated on the 10th October.

“We expect the FBM KLCI to stabilise its downside momentum and quietly grind higher, taking advantage of the Budget play and the bargains in the Malaysian blue chips after five straight weeks of correction,” he said.

Nazri, who is also president of the Malaysian Association of Technical Analysts, said that despite weaker near term trend, the longer term trend remains firmly bullish, with resistance coming in at the 1850 and 1860 levels while stronger shelf of support for any October dips stand at 1840 and 1830 levels.