KUALA LUMPUR (Jan 3): The FBM KLCI, which rose to a new record high on Thursday, may struggle to sustain its gains on Friday as some mild profit taking could halt the ascent of a possibly overbought local index.
Stocks on Wall Street started 2013 with their best day in more than a year as relief over a last-minute deal in Washington to avert the fiscal cliff sparked a broad rally with TECHNOLOGY  and banking shares leading the move higher, according to Reuters.
However, the global stock market rally petered out on Thursday as investors began worrying about likely US political battles over spending cuts, halting the gains that followed a congressional deal to avoid sharp tax increases, it said.
European shares, which had risen 2.1% to hit a 20-month high on Wednesday, edged up just 0.3% in early trade while other riskier assets such as oil and the euro eased. The MSCI world equity index, dipping from an 18-month high, was down 0.1% at 346.7 points, it added.
Global stocks rose on Wednesday after the US Congress passed the fiscal bill and solved an immediate dilemma, averting income-tax increases for most Americans while taxing top earners more, but left the unanswered longer-term question of taming the federal debt.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said a break of the critical 1,669 short-term support level (on Nov 2) led to a plunge towards 1,590.67 on Nov 28. But the index rebounded to hit an all-time high of 1,692.65 on Jan 3, 2013.
"Thus, the obvious support levels are seen at the 1,632, 1,679 and 1,690 levels, while the resistance level of 1,692 may offer token profit-taking activities. Tactically, investors may liquidate on rallies due to the index’s long-term bearish divergence signals. Continue to take profit on any price rally as ample weekly bearish divergence signals are apparent," said Lee.
Lee also said the US Congress must act as early as mid-February to prevent a default and the dispute may reprise a similar 2011 episode that led to a downgrade of the US credit rating.
Among the stocks that could be in focus on Friday are LBS BINA GROUP BHD , V. S. Industry Bhd (VSI), Destini Bhd and BRIGHT PACKAGING INDUSTRY BHD 
After exceeding its sales target of RM800 million in 2012, property developer LBS Bina Group Bhd is raising its target to RM1 billion for FY13 ending Dec 31. The target will be supported by strong unbilled sales and the high gross development value of new launches and upcoming projects.
At a media briefing on Thursday, LBS Bina managing director Datuk Lim Hock San said the group’s unprecedented sales of RM871 million in FY12 was a 31.37% increase from the previous financial year’s RM663 million. "Our RM1 billion sales target (for FY13) is 14.8% higher than the actual sales in FY12," he said.
V. S. Industry (VSI) expects higher contribution from Keurig Inc, a manufacturer of single-cup brewing systems. In a statement on Thursday, VSI managing director Datuk Gan Sem Yam said that since the opening of the dedicated manufacturing plant for Keurig Single Cup Brewers in November 2011, VSI had been working together with Keurig to bring high-quality brewers to the global market.
“With the uptrend in sales orders, we anticipate Keurig contributing about 10% to group revenue in FY13 ending July 31," said Gan.
Destini Bhd has acquired an industrial property at the Hicom-Glenmarie Industrial Park in Shah Alam for RM14.8 million to house its new headquarters. In a filing with Bursa Malaysia on Thursday on behalf of the company, M&A Securities Sdn Bhd said Destini had proposed to refurbish the property which will be used for the servicing aviation and marine safety survival equipment, as well as to extend its existing workshop facilities and new calibration workshop, among others.
Meanwhile, Bursa Malaysia has issued an unusual market activity query to Bright Packaging Industry Bhd over the the sharp rise in the company’s share price.
As at 5pm, Bright Packaging had risen five sen to RM2.10 with 235,000 shares traded.
KLCI open UP ! - Today KLCI open with a bang, up 12 points. Surely many were expecting KLCI to go down after Dow Jones was down 153 points last night. But KLCI goes the op...