KUALA LUMPUR: Blue chips extended their losses for the second day on Thursday on lack of fund support amid the lacklustre corporate earnings while caution prevailed over the sustainability of the crude oil price rally.
However, AirAsia and AirAsia X
continued to be in the spotlight on expected stronger earnings in the second quarter ended June 30.
At 9.23am, the KLCI was down 2.38 points or 0.14% to 1,691.94. Turnover was 376.52 million shares valued at RM134mil. There were 178 gainers, 144 losers and 232 counters unchanged.
Reuters reported Asian stocks edged up early on Thursday and the dollar fell after the Federal Reserve's latest meeting minutes showed policymakers were in no hurry to add to US borrowing costs.
Oil prices dipped in early trading on Thursday as the prospect of record Saudi output weighed on markets and as traders cashed in on profits following an almost uninterrupted price rally this month of nearly 20%.
International Brent crude oil futures were trading at US$49.67 per barrel at 0050 GMT, down 18 cents from their last close. West Texas Intermediate (WTI) crude futures were flat at US$46.79.
Hong Leong Investment Bank (HLIB) Research expects a mild consolidation amid the bullish weekly MACD and RSI indicators. It remains positive that the KLCI will break the 1,700 decisively after a brief consolidation to test 1,716 (100-w SMA), 1,729 (YTD high) and 1,739 (LT objective) in the long term.
“We expect KLCI to engage in a mild consolidation amid toppish KLCI daily and weekly slow stochastic indicators. Sentiment may turn more cautious as we embrace a flurry of big caps results in the next two weeks during the August reporting season.
“However, any pullback will be well absorbed in anticipation of more stimulus-driven and accommodative policy measures by key central banks and government, the return of higher yield seeking funds into emerging markets and rebound in the “Twin” crude oil and palm oil prices coupled with stabilizing Ringgit,” it said.
SAM Engineering fell the most, down 51 sen to RM6.99 after the lacklustre results. Amway fell 19 sen to RM8.77 after disappointing results.
PPB Group fell 16 sen to RM16 and Genting Plantations lost 12 sen to RM10.42.
HLFG lost 16 sen to RM15.88 and Hong Leong Bank was down six sen to RM13.08 in very thin trade.
BAT added 30 sen to RM50.40. CIMB Equities Research is retaining its Reduce call for British American Tobacco (Malaysia) Bhd (BAT) and dividend discount model-based (DDM) target price of RM50.
“Although the group’s restructuring plans are expected to be positive in the long term, underlying concerns on declining sales volume and impact of illicit cigarettes still outweigh the positives,” it said.
Apex Healthcare rose 13 sen to RM3.95 and Takaful 11 sen to RM4.30.
However, AirAsia and AirAsia X
continued to be in the spotlight on expected stronger earnings in the second quarter ended June 30.At 9.23am, the KLCI was down 2.38 points or 0.14% to 1,691.94. Turnover was 376.52 million shares valued at RM134mil. There were 178 gainers, 144 losers and 232 counters unchanged.
Reuters reported Asian stocks edged up early on Thursday and the dollar fell after the Federal Reserve's latest meeting minutes showed policymakers were in no hurry to add to US borrowing costs.
Oil prices dipped in early trading on Thursday as the prospect of record Saudi output weighed on markets and as traders cashed in on profits following an almost uninterrupted price rally this month of nearly 20%.
International Brent crude oil futures were trading at US$49.67 per barrel at 0050 GMT, down 18 cents from their last close. West Texas Intermediate (WTI) crude futures were flat at US$46.79.
Hong Leong Investment Bank (HLIB) Research expects a mild consolidation amid the bullish weekly MACD and RSI indicators. It remains positive that the KLCI will break the 1,700 decisively after a brief consolidation to test 1,716 (100-w SMA), 1,729 (YTD high) and 1,739 (LT objective) in the long term.
“We expect KLCI to engage in a mild consolidation amid toppish KLCI daily and weekly slow stochastic indicators. Sentiment may turn more cautious as we embrace a flurry of big caps results in the next two weeks during the August reporting season.
“However, any pullback will be well absorbed in anticipation of more stimulus-driven and accommodative policy measures by key central banks and government, the return of higher yield seeking funds into emerging markets and rebound in the “Twin” crude oil and palm oil prices coupled with stabilizing Ringgit,” it said.
SAM Engineering fell the most, down 51 sen to RM6.99 after the lacklustre results. Amway fell 19 sen to RM8.77 after disappointing results.
PPB Group fell 16 sen to RM16 and Genting Plantations lost 12 sen to RM10.42.
HLFG lost 16 sen to RM15.88 and Hong Leong Bank was down six sen to RM13.08 in very thin trade.
AirAsia rose nine sen to RM3.20 and AirAsia X added 1.5 sen to 47.5 sen. AAX-CU rose 1.5 sen to 10 sen, AAX-CV climbed one sen to 14 sen and the warrants 0.5 sen to 31 sen.
BAT added 30 sen to RM50.40. CIMB Equities Research is retaining its Reduce call for British American Tobacco
(Malaysia) Bhd (BAT) and dividend discount model-based (DDM) target price of RM50. “Although the group’s restructuring plans are expected to be positive in the long term, underlying concerns on declining sales volume and impact of illicit cigarettes still outweigh the positives,” it said.
Apex Healthcare
rose 13 sen to RM3.95 and Takaful 11 sen to RM4.30.Already a subscriber? Log in
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