Heavyweights push FBM KLCI above 1,820 points level
KUALA LUMPUR: A buying spree of heavyweight counters pushed the FTSE Bursa Malaysia KLCI ( FBM KLCI) above the 1,820 points level, in celebration of Barisan Nasional’s victory Sunday in the just concluded 13th General Election.
It easily breached its nearest resistance level of 1,750 points after opening higher at 1,771.62 points, before climbing further to an all-time high of 1,826.22 at 9.04am.
It, however, retreated slightly to 1,743.76 and hovered around the level at 10 am.
British American Tobacco topped the list of gainers in the bluechips segment, chalking up RM3 to RM65.36, followed by Petronas Gas which rose RM1.12 to RM20.68, CIMB added 71 sen to RM8.32, Hong Leong earned 66 sen to RM15.96 and Kuala Lumpur Kepong garnered 64 sen to RM21.58.
RHB Research said with the general election overhang out of the way, the market was expected to gradually move higher in the months ahead to narrow the gap with regional peers as concerns over continuity of policies and sanctity of contracts have abated.
“The existing government and business relations should also be maintained, alleviating market uncertainty that could encourage further foreign funds inf lows and possibly increase retail participation,” it said in a research note yesterday.
It said the near-term technical outlook for the FBM KLCI remained bullish with the market barometer resuming its rally and extending the uptrend in the previous weeks.
However, it said as the index had already gone up by about 100 points from the latest major low created earlier in the year without a proper breather, and therefore, a further pullback was not surprising, which was considered as a healthy correction.
RHB Research had upgraded the recommendation for construction and property sectors to ‘overweight’ while maintaining the same view on banking and finance, oil and gas, utilities, healthcare, gaming, media, consumer and rubber gloves sectors.
Meanwhile, the research house has maintained its ‘neutral’ view on plantation, automotive, timber, education, transport, telecommunications and semiconductor sectors.