Market firmer, CIMB, Top Glove up

KUALA LUMPUR: Blue chips were higher in early trade on Friday, Jan 8, supported by gains in CIMB and Top Glove, enabling the FBM KLCI to stay clear above the 1,290 level while the broader market showed some improvement in line with the key regional markets.

At 10am, the FBM KLCI rose 3.15 points to 1,294.57. Turnover was 232.09 million shares valued at RM165 million. There were 215 gainers, 125 losers and 178 stocks unchanged.

Japan's Nikkei 225 rose 0.67% to 10,753,24 while Hong Kong's Hang Seng Index was marginally higher at 22,275.52. Singapore's Straits Times Index added 0.07% to 2,915.22 but Shanghai's Composite Index fell 0.59% to 3,174.05 at 9.48am.

Light crude oil fell 12 cents to US$82.54 and US spot gold lost US$6.30 to US$11,125.30.

OSK Investment Research said based on Thursday's market performance, it was very obvious that the market's gains were capped by the formidable 1,300 resistance level. After coming so close to the 1,300-level, the FBM KLCI slowly backed off and eventually ended the session with a marginal loss.

Nevertheless, overall market sentiment was very healthy, with more than 1.5 billion shares changing hands.

"From here, we will see if the 1,300 pt-level can be violated. Violation of the 1,300-level could potentially prompt the market to rise faster. Meanwhile, as the uptrend started since March this year is still firmly intact, we maintain our firmly bullish bias view.

"To the upside, an immediate resistance lies at the 1,300-level. Should the 1,300-level be taken out, look out for another resistance at the 1,305-level. To the downside, there is an immediate support at the 1,288-level, followed by the 50-day MAV line, which is situated at the 1,265-level," said OSK Research.

Ho Hup rose 19 sen to RM1.46 as investors hoped the proposed revamp by the opposing shareholders would be able to rescue the company.

CIMB added 20 sen to RM13.34 while Top Glove gained 12 sen to RM10.52 and Petronas Gas 11 sen higher to RM9.91.

Actively traded KNM rose 0.5 sen to 80.5 sen and KNM-CB advanced 0.5 sen also to 8.5 sen after the company secured a RM143 million contract in Thailand.

Among PLANTATION []s, Far East was the top loser, down 20 sen to RM6.60 and KLK shed 10 sen to RM17.10 but PPB added 14 sen to RM16.70.

AFG fell eight sen to RM2.35 in active trade, again over concerns about its banking unit