Malaysia KLCI Rises 0.5%; 1660 Resistance - Affin

03 Sep 2012

Malaysia's KLCI is up 0.5% at 1653.26, but off an intraday high of 1655.27, with major sectoral indicators in positive territory.  Affin says the three most "economically-sensitive sectors," namely finance, trading services, and properties, are likely to drive the benchmark index higher, while relative weakness, or a bearish divergence, of the cyclical sectors that would show underlying broad market weakness has yet to be seen.   "These cyclical sectors may be overbought and consolidating, but as long as their breakouts to new highs are holding, we continue to see more strength than weakness," says Nazri Khan, Affin's head of retail research. He tips the cap at 1660. Market breadth is positive at 263 gainers and 213 losers with 489.6 million shares changing hands.  Datasonic Group (5216.KU) is up 9.0% at MYR2.18 on its listing debut from an IPO price of MYR2.00.  Axiata Group (6888.KU) is up 3.7% at MYR6.21, and  MNRB Holdings (6459.KU) is up 4.8% at MYR3.08 after both companies posted better-than-forecast results.