Blue chips up in cautious trade

KUALA LUMPUR: Blue chips climbed in early trade on Wednesday, April 21, nudged by gains in Bursa but the overall market reflected some hesitant among investors despite the firmer key regional markets.

At 10.07am, the FBM KLCI was up 1.95 points to 1,337.85. Turnover was 195.13 million shares valued at RM167.57 million. There were 253 gainers, 104 gainers and 195 stocks unchanged.

Key Asian markets rose, with Japan's Nikkei 225 up 1.54% to 11,068.77; Hong Kong's Hang Seng Index opened 0.5% higher at 21,732.76 while Shanghai's Composite Index added 0.51% to 2,994.74 and Singapore's Straits Times Index added 0.43% to 1,337.72.

Light crude oil climbed 49 cents to US$84.34.

RHB Research said in its technical outlook for the FBM KLCI that the formation of a positive candle and the better momentum readings suggest a possible further rebound on Wednesday, if the FBM KLCI crosses to above the 10-day SMA of 1,336.

"However, the continued fall in the daily turnover and the failure to completely remove the 10-day SMA yesterday implied that there is still risk ahead for the index to regain its upward momentum," it said.

RHB Research said only if the index chalks up a positive confirmation candle to above the 10-day SMA and manages to increase the daily trading volume to above the 1.0 billion shares mark, will it see a strong return in trading momentum. Otherwise, it expect sellers to resume their activities soon.

"Chart-wise, the short-term downside targets for the FBM KLCI have remained unchanged at the 40-day SMA of 1,314, a 2.6-pts technical gap near 1,305 and the 1,300 level. On the upside, a removal of the 10-day SMA will boost the trading sentiment and hence, leading the index to the recent high of 1,347.61, before resuming its previous medium-term target at 1,390," it said.

BAT was the top gainer, up 96 sen to RM44.30, Panasonic Malaysia 22 sen to RM16.90, while Bursa added 13 sen to RM7.73.

Tan Chong managed to halt its recent profit taking, with investors seen nibbling on the stock. It rise 17 sen to RM4.63. Glove makers Hartalega added 21 sen to RM7.69 and Top Glove 14 sen to RM12.94.

Affin-WC was the most active with 20.5 million units done, adding 1.5 sen to 19 sen.

Consumer stocks fell in thin trade, with Nestle down 22 sen to RM35.16 with 100 shares done, KFCH 19 sen to RM7.80, F&N eight sen to RM10.88, GAB seven sen to RM6.89.

EON Cap lost eight sen to RM7.07 and CIMB six sen to RM14.18.