KLCI gives up half of previous day’s gains early Friday

KUALA LUMPUR: The FBM KLCI gave up half of the previous day’s gains early Friday as traders decided to book their profits ahead of the extended weekend despite the firmer key Asian markets. 

At 9.31am, the KLCI was down 6.38 points or 0.39% to 1,637.370. Turnover was 135.78 million shares valued at RM57.36mil. There were 133 gainers, 160 losers and 185 counters unchanged.

On Thursday, the KLCI jumped about six points in the last six minutes of trade.

Hong Leong Investment Bank (HLIB) Research said while investors will likely stay risk-off as reflected by the thin volume until further clarity emerges, the local market is expected to be boosted by the overnight Dow’s rally and longer-than-expected European Central Bank’s quantitative easing extensions.

“Overall, investors may attempt to walk past the recent 3Q16 weak earnings cycle and Trump policy jitters, and focus on positives arising from improving oil prices post OPEC decision (i.e. fiscal position & current account). 

“We expect KLCI to trend higher towards 1,640-1,666 by end-Dec, reinforced by strong tendency of a year-end window dressing rally, tapering MGS bond selloff and stabilising Ringgit/US$ following recent Bank Negara Malaysia’s curbs against non-deliverable forwards (NDFs),” it said.

Oil prices extended gains on Friday, buoyed by growing optimism that non-OPEC producers might agree to cut output following a cartel agreement to limit production. NYMEX crude for January delivery was up 17 cents at US$51.01 a barrel, Reuters reported.

BAT fell the most, down 32 sen to RM44.66 while Axiata lost 12 sen to RM4.52 and KL Kepong eight sen lower at RM23.98. IJM and AmBank gave up seven sen each to RM3.33 and RM4.38.

DKSH fell 18 sen to RM4.76, Kossan 13 sen lower at RM6.46 and TMC Life-CA saw its  trading price halved when it fell 7.5 sen to 7.5 sen.

Subur Tiasa rose five sen to RM1.45, Danco four sen to RM1.42 while SOP and SP Setia gained three sen each to RM3.73 and RM3.35.