KUALA LUMPUR: Investors stayed cautious early Thursday and were quick to take profit on recent gainers including Genting Bhd
and CIMB in the absence of strong leads from institutional players.
At 9.41am, the KLCI was down 6.1 points or 0.35% to 1,737.98, giving up most of the previous day’s late gains. Turnover was heavy with 715.39 million shares valued at nearly RM200mil. There were 201 gainers, 297 losers and 309 counters unchanged.
The US dollar and Treasury yields stumbled on Thursday after President Donald Trump said he preferred the Federal Reserve keep interest rates low as the dollar is getting too strong, and said he wouldn't label China a currency manipulator, Reuters reported.
But Asian stocks fared better than Wall Street, which declined following the comments and closed between 0.3% and 0.5% lower.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.15 percent in early trade. Most markets in the region will be closed on Friday for the Good Friday public holiday. Japan's Nikkei slumped 1%.
At Bursa Malaysia, Hong Leong Investment Bank (HLIB) Research pointed out that despite Wednesday’s 0.47% gain, KLCI near term outlook remains mixed unless it can swiftly regain its composure above the support trend line near 1747.
“Failure to do so will witness the index remaining in consolidation mode. A strong close above 1,747 will spur KLCI to retest 1,750-1,759 levels.
“On the contrary, a fall below 1,736 (or 30-day simple moving average) again would suggest a corrective move towards 1,721 (50-day SMA) and 1,705 (38.2% FR) levels,” it said.
Genting Bhd fell nine sen to RM9.42 and CIMB eight sen lower at RM5.39.
As for consumer stocks, Heineken lost 52 sen to RM17.86 after the release of its earnings for the first quarter ended March 31, 2017. Nestle fell 48 sen to RM81.50 with 200 shares done.
Among the plantations, Genting Plantations and KL Kepong fell 28 sen each to RM11.38 and RM24.20following the decline in crude palm oil prices of late due to over supply.
Globetronics lost eight sen to RM5.03 but KESM added 10 sen to RM12.18.
Small cap oil and gas player Enra rose 20 sen to RM2.90 while Petronas Dagangan added 18 sen to RM24.26.
Pos Malaysia continued to see strong interest, adding 11 sen to RM5.12 on the strong logistics play.
EITA Resources added nine sen to RM1.78 with 1.50 million shares done. CIMB Equities Research initiated coverage with an Add and target price of RM2.40, which is 45.5% above the last traded price of RM1.65.
Eita’s core business is the manufacture and installation of elevators, escalators and bus duct systems. Other businesses include distribution of electrical and electronics (E&E) components and service maintenance of elevators.
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