KUALA LUMPUR: Blue chips kicked off on Monday on a hesitant note, in line with the cautious key Asian markets, with analysts expecting the FBM KLCI to continue to consolidate.
At 9.18am, the KLCI was down 1.61 points or 0.09% to 1,757.55. Turnover was 256.69 million shares valued at RM92.03mil. There were 164 gainers, 146 losers and 233 counters unchanged.
Reuters reported Asian stocks slipped on Monday as demand for riskier assets ebbed after recent strong gains, while the euro's near-two-year high on the European Central Bank's seeming lack of concern about its strength left the dollar languishing near a 13-month low.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1% while Japan's Nikkei dropped 0.8% on a stronger yen. Australian shares retreated 0.2% and South Korea's Kospi was flat, it said.
Kenanga Investment Bank Research said despite the gains in the local benchmark, the KLCI remains stuck within its sideways consolidation phase between 1,750 and 1,761 for the second week.
“With the indicators flat lining, we expect the directionless trade to continue in the absence of major catalysts.
“Overall, bias is on the downside with the 20-day and 50-day SMAs in a ‘Dead Cross’. However, in the event the 1,750 support gives way, expect a rapid capitulation towards 1,729 (S2) next.
“On the flip-side, strong resistance levels are likely to cap any near-term gains to 1,771/1775 (R1) and 1,795 (R2),” the research house said.
However, Hong Leong Investment (HLIB) Research said the KLCI may be ripe for a 2nd week of technical rebound to play catch-up with regional peers ahead of the two-day Invest Malaysia event, amid speculations that government may reveal the new master developers of Bandar Malaysia.
“Technically, we may see KLCI to inch up further after closing above the 10-day simple moving average (SMA), supported by bottoming up technical indicators.
“Weekly resistances are 1770 (30-d SMA) and 1777 (upper Bollinger band) while supports are situated near 1751 and 1748 (lower Bollinger band),” it said.
Nestle fell 28 sen to RM83 and Dutch Lady
10 sen to RM58.90 but Carlsberg gained 10 sen to RM15.10.
Axiata lost six sen to RM4.66.
MPI fell 18 sen to RM13.68, Tien Wah 13 sen to RM1.70, Kimlun nine sen to RM2.20 while Globetronics lost five sen to RM6.10.
KL Kepong rose 18 sen to RM24.92, HCK 13 sen to RM5.50, Turbo 11.5 sen to 93.5 sen while Weida added eight sen to RM2.10.
YSP Southeast Asia gained six sen to Rm3.07 while Muhibbah and MFCB added five sen each to RM2.55 and RM3.88.
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