KUALA LUMPUR (March 10): The FBM KLCI rose 0.78% at mid-morning today on bargain-hunting activities but broader market sentiment remained fragile in line with the regional markets.

At 10am, the FBM KLCI was up 11.2 points to 1,435.36. The index had earlier risen to a high of 1,438.38.

Market breadth remained negative with 465 losers and 277 gainers, while 275 counters traded unchanged. Volume was 1.19 billion shares valued at RM659.29 million.

The top gainers included Heineken Malaysia Bhd, Sime Darby Plantation Bhd, MISC Bhd, British American Tobacco (M) Bhd, Public Bank Bhd, Petronas Chemicals Group Bhd, IOI Corp Bhd and Frontken Corp Bhd.

The actives included Dayang Enterprise Holdings Bhd, Bumi Armada Bhd, Sapura Energy Bhd, Hibiscus Petroleum Bhd, Velesto Energy Bhd, Perdana Petroleum Bhd, KNM Group Bhd, JAKS Resources Bhd and Lambo Group Bhd.

The decliners included Malaysian Pacific Industries Bhd, Fraser & Neave Holdings Bhd, Aeon Credit Service (M) Bhd, Petronas Dagangan Bhd, Kuala Lumpur Kepong Bhd, Vitrox Corp Bhd, Dayang and Mega First Corp Bhd.

Reuters said Asian markets skidded again on Tuesday after Wall Street suffered its biggest one-day loss since the 2008 financial crisis, but the selling was restrained by hopes for coordinated policy action to quell the panic.

Speculation of more central bank rate cuts and possible fiscal stimulus saw US Treasury yields edge up from historic lows, and oil prices paused after the steepest fall since the 1991 Gulf War, it said.

Meanwhile, it said oil prices rose by more than US$1 on Tuesday after a price war by top producers Saudi Arabia and Russia sparked the biggest daily rout since the 1991 Gulf War, but investors saw little chance of a quick price recovery as the coronavirus cuts demand.

Hong Leong IB Research said given the bearish Dow’s outlook, it expects the FBM KLCI to lock in an extended consolidation as investors continue to monitor the new cabinet line-up and domestic political situation ahead of the Parliament sitting on May 18 coupled with the widely spreading Covid-19 outbreak.

“Meanwhile, worries over the implementation of Budget 2020 as well as the RM20 billion economic stimulus package resurface due to sinking oil prices (-54.6% from 52-week high of US$75.6 and -44.6% lower than average US$62 petroleum-related revenue crude oil price assumption by MOF),” it said.