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Rally continues past 1,600 points

KUALA LUMPUR: Investors resumed the rally past the 1,600-point level as the postive sentiment over a reopening economy continued to grow.

At 9.15am, the FBM KLCI looked intent to avoid a “double-top” formation on the price chart as it pushed past the crucial hurdle after gaining 11.34 points to 1,609.62.

The market breadth was decidedly positive with 407 gainers versus 179 decliners, building on the bullish trend of the previous week where market breadth was positive in four of the five days.

In its weekly technical outlook, Kenanga Research noted that trading activity was seen picking up over the past week with daily average turnover coming in at 5.1 billion shares valued at RM3.3bil, higher than the previous week’s average of 4.3 billion shares worth RM3bil.

It also said that following the recent gains, the FBM KLCI is reflecting bullish investor sentiment.

“As the key market barometer continues to hover above the 100-day SMA, the underlying market tone may remain firm for the time being,” it said.

However, it cautioned investors over the possibility of a “double-top” pattern in the making, given that the index had previously struggled at the current price level in September before entering a correction.

Among stocks on the blue-chip index, Maybank rose five sen to RM8.33, Public Bank added three sen to RM4.23, CIMB edged one sen higher to RM5.16 and Hong Leong Bank jumped 12 sen to RM18.82.

IHH Healthcare remained on a solid footing, rising seven sen to RM6.79.

In plantations, Sime Darby Plantation gained four sen to RM4.39, IOI rose three sen to RM4.08 and Kuala Lumpur Kepong climbed six sen to RM22.76.

Top actives on the broader market included Tiger up five sen to 4.5 sen, MAG rising one sen to 21.5 sen and Bintai Kinden jumping 4.5 sen to 42.5 sen.

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