FBM KLCI Recovers Amid Higher Demand For Blue Chips And Stronger Performance

Maybank Investment Bank Bhd (MIBB) in the recent Trader’s Almanac report said the FBMKLCI Index rebounded amid strong fresh interest in blue chips in tandem with generally stronger performance across the regional equities markets.

The benchmark index rose 12.49 points, or 0.89%, to end the day at 1,409.09, led by advances in SIMEPLT, PMETAL, AMBANK and QL. 

Market breadth was mixed with losers barely outnumbering gainers by 416 to 410. A total of 2.83 billion shares valued at RM1.50 billion changed hands. 

Investors and traders’ interest returned to blue chips and the energy, industrial and telco sectors led the recovery yesterday. 

“Technically, we expect the FBMKLCI Index to range between 1,400 points and 1,440 points today, with supports remaining at 1,380 points and 1,350 points,” said MIBB.

UEM EDGENTA – 1368 (MYR1.02)

Strategy: accumulate 

The major downtrend line was taken out yesterday – on the back of unusually high trading volume. The stock also surged past the upper Bollinger band along with a bullish reading in both the Stochastic and moving average convergence/divergence – indicating the overall bias has shifted upward. We expect the new upcycle to continue to unfold in the near term.

HEKTAR REITS – 5121 (MYR0.690)

Strategy: accumulate

The recent correction has ended following the reversal within the 61.8% financial reporting level and both the 100 & 200-day exponential moving average lines. Yesterday’s gain on the back of fresh bullish reading in both the relative strength index and moving average convergence divergence is set to kick-start a new upcycle while resuming the prior uptrend move. We expect the stock to trade higher in the near term.

UMW HOLDINGS – 4588 (MYR3.79)

Strategy: accumulate

The recent correction has ended following a timely reversal within the major resistance-turned-support sub the MYR3.50 region, the 61.8% financial reporting level and the 100-day exponential moving average line. The subsequent sharper gain on the back of bullish reading in both the relative strength index and moving average convergence divergence signals a continuation of the prior uptrend. We expect the major uptrend to resume in the near term.

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