July 28, 2020

KLCI Pares Gains As Nation Awaits Verdict Of Najib’s SRC Trial, Jewellers Shine On Strong Gold Price

The FBM KLCI pared some of its gains at mid-morning as the nation awaited with bated breath the verdict of the of the SRC International Sdn Bhd trial,while jewellers listed on Bursa Malaysia advanced on soaring gold prices.

At 10am, the FBM KLCI was up 12.96 points to 1,604.44. The index had earlier risen to a high of 1,606.29.

Gainers led losers by 442 to 343, while 390 counters traded unchanged. Trading volume was 3.74 billion shares valued at RM1.73 billion.

The gainers included Hartalega Holdings Bhd, Petronas Dagangan Bhd, United Plantations Bhd, Bursa Malaysia Bhd, DKSH Holdings (M) Bhd, Mi Technovation Bhd, Tomei Consolidated Bhd, UWC Bhd and Poh Kong Holdings Bhd.

The actively traded stocks included XOX Bhd, Borneo Oil Bhd, Key Alliance Group Bhd, ManagePay Systems Bhd, Ageson Bhd, Bioalpha Holdings Bhd, Berjaya Corp Bhd and HLT Global Bhd.

The decliners included Kossan Rubber Industries Bhd, Top Glove Corp Bhd, Teck Guan Perdana Bhd, Batu Kawan Bhd, Knusford Bhd, Daibochi Bhd and SAM Engineering & Equipment Bhd.

Bloomberg said Asian stocks had a muted start Tuesday ahead of a Federal Reserve meeting where policy makers are expected to reinforce their dovish message.

Gold extended gains after hitting an all-time high and strengthened 2.1% to US$1,942.24 an ounce this morning, while the dollar remained under pressure, it said.

Hong Leong IB Research said in the short term, rotational buying interests in the technology, covid-19 winners and GLC-linked stocks are expected to sustain the trading activities and strong volume in the local equity market (average RM5.2 billion value in July versus year-to-date RM3.4 billion), thanks to the choppy markets triggered by the Covid-19 news, tit-for-tat actions between the US and China, domestic political uncertainty, expectations of a bleak August reporting season valuation and growing speculation about GE15 by end 2020.

“Unless a successful breakout above 1617 neckline resistance, current consolidation mode would prevail to neutralise overbought technical momentum for a more sustained uptrend going forward.

“Breaking this hurdle would open the door for higher targets at 1641 (weekly upper BB) and 1679 (200W SMA) zones.

“On the flip side, a sharp fall below 1563 would witness the index to revisit 1552 (30D SMA) and 1526 (50d SMA) territory,” it said.



source: https://www.theedgemarkets.com/article/klci-pares-gains-nation-awaits-verdict-najibs-src-trial-jewellers-shine-strong-gold-price

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