KUALA LUMPUR (April 27): Bargain hunting in main index-linked stocks boosted the key index at midday on Thursday (April 27), led by the financial services as well as the telecommunications and media counters.

At the lunch break, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 2.29 points to 1,416.54 from Wednesday’s close of 1,414.25.

The barometer index opened 2.19 points better at 1,416.44 and moved between 1,413.46 and 1,417.48 throughout the morning trading session.

However, the market breadth was negative with decliners surpassing gainers 378 to 274, while 388 counters were unchanged, 1,254 untraded and 65 others suspended.

Turnover stood at 1.44 billion units valued at RM686.57 million.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the benchmark index is at an oversold level, hence providing opportunities for investors to accumulate stocks at attractive levels given their cheaper valuations.

“However, we advise investors to remain vigilant due to the rising volatility and uncertainties globally,” he told Bernama.

Malacca Securities Sdn Bhd said that on the global front, fears of a recession resurfaced as investors await the US Federal Reserve interest rate decision next week.

“Hence, the cautious sentiment on the local front may persist at least for the near term.

“Investors may see further selldown in energy counters along with declining crude oil prices amid worries over a potential contraction in the economic activities,” the research firm said in note on Thursday.

Malacca Securities said it believes that traders may position themselves within the defensive sectors such as telecommunications and utilities amid the uncertain environment.

Among the heavyweights, Malayan Banking Bhd gained three sen to RM8.64, Public Bank Bhd added one sen to RM3.90 and CIMB Group Holdings Bhd rose by five sen to RM5.10, while Petronas Chemicals Group Bhd shed 11 sen to RM7.04 and CelcomDigi Bhd fell one sen to RM4.39.

As for the actives, Classita Holdings Bhd was two sen higher at 18 sen, Tanco Holdings Bhd bagged four sen to 52 sen, Computer Forms (M) Bhd added one sen to 28 sen, while Kronologi Asia Bhd decreased half sen to 58 sen.

On the index board, the FBM Emas Index increased 4.57 points to 10,396.65 and the FBMT 100 Index rose 3.97 points to 10,081.65, while the FBM Emas Shariah Index decreased 21.68 points to 10,729.09, the FBM ACE Index was 8.54 points better at 5,359.20, and the FBM 70 index dropped 45.58 points to 13,513.14.

Sector-wise, the Industrial Products and Services Index shaved 0.95 of-a-point to 170.53 and the Plantation Index went down 25.00 points to 6,859.46, while the Energy Index rose 1.60 points to 845.10 and the Financial Services Index jumped 57.36 points to 15,549.40.