Tenaga slips early Tuesday, weighs on KLCI

KUALA LUMPUR: Some selling of power giant Tenaga Nasional dragged the FBM KLCI into the red early Tuesday despite the firmer opening with analysts expecting a short-term rebound from oversold conditions.

At 9.30am, the KLCI was down 0.28 of a point or 0.02% to 1,754.91. Turnover was 277.13 million shares valued at RM114.76mil. There were 198 gainers, 157 losers and 265 counters unchanged.

Asian shares stepped back from more than two-year highs on Tuesday while the dollar sagged on growing expectations that the Federal Reserve will take a more cautious approach to raising interest rates, Reuters reported.

Wall Street ended little changed on Monday in low-volume trading, as investors braced for a flood of second-quarter earnings reports later this week.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2%, a day after scaling its loftiest levels since April 2015. Japan's Nikkei stock index dipped 0.4% in early deals, as markets resumed trading after a public holiday on Monday and caught up to a stronger yen.

Kenanga Investment Bank Research said chart-wise, the KLCI continued to test the 1,754 (S1) support level on Monday. 

“Although we do not discount the possibility of a near-term relief from oversold conditions (RSI and Stochastic), any gains are likely to be short lived with the key SMAs in a “Dead Cross” and MACD remaining below the Zero-line.

“In the event the 1,754 support gives way, expect a swift capitulation towards 1,729 (R2). Conversely, strong resistance levels are likely to be present at 1,771/1775 (R1) and 1,795 (R2),” it  said in its technical outlook.

Tenaga Nasional fell six sen to RM14.12 with 283,000 shares done.

Genting Plantations and KL Kepong fell 10 sen each to RM10.72 and RM24.60 while Ta Ann lost six sen to RM3.34 with 100 shares traded. PPB Group rose 12 sen to RM17.

Aeon Credit fell 10 sen to RM13.10 and Hong Leong Bank eight sen lower at RM15.82 while Hartalega lost five sen to RM6.82 and Sunsuria three sen lower at RM1.45.