KLCI down on selling pressure

KUALA LUMPUR: Share prices on Bursa Malaysia closed lower at midday on lack of follow-through support with some profit-taking seen in selected counters

At 12.30 pm, the bellwether FBM KLCI ended the morning session 1.90 points lower at 1,749.04. The index opened 4.06 points lower at 1,746.88 this morning.

There were 307 gainers, 389 losers and 394 counters traded unchanged on the Bursa Malaysia. Turnover was at 1.154 billion shares valued at RM806.091mil.

Analysts said there was profit-taking in selected index-linked counters and a lack of follow-through buying today. 

PublicInvest Research said the FBM KLCI might open within a tight range today after global equity indices closed mixed overnight.

Asian markets were mostly higher as Wall Street continued to advance. Japan’s Nikkei 225 fell 0.26% to 22,876.82,  Hong Kong’s Hang Seng Index rose 0.3% to 29,079.92 and Singapore’s Straits Times Index added 0.06% to 3,415.01.

Overnight, Dow Jones Industrial Average ended with gain 8.81 points, or less than 0.1%, at 23,557.23. The S&P 500 index closed less than a point lower at 2,590.64 and the Nasdaq Composite Index declined 18 points, or 0.3%, to 6,767.78. 

European markets, however, finished lower with shares in Germany leading the region. The DAX lost 0.66% while London’s FTSE 100 was off 0.65% and France’s CAC 40 gave away 0.48%.

Hong Leong Investment Bank Research said trading interest on heavyweights and oil and gas may sustain. It added that the return of buying support from foreign funds may spur further buying interest on selected heavyweights. 

“However, without fresh catalysts in the stock market, broader market within the small cap space may stay muted. Nevertheless, we opine that the trading interest may linger within O&G sector with the Brent crude oil hovering above US$63,” it said. 

“The KLCI formed a flag formation breakout above 1,745 and ended above 1,750. The MACD indicator and momentum oscillators are turning more positive. We think the FBM KLCI may revisit 1,760 over the near term. Support will be located around 1,740-1,745,” Hong Leong said. 

On Bursa Malaysia, British American Tobacco was the top gainer, adding RM1.10 to RM38.26, Dutch Lady added 48 sen to RM60 and KESM rose 46 sen to at RM18.16. 

The decliners included Petronas Gas, Panasonic Manufacturing and Hong Leong Financial Group. 

Among the banks, Maybank fell five sen to RM9.20, Public Bank eased two sen to RM20.46 while CIMB Group eased three sen to RM6.22.

Meanwhile, Reuters reported that oil markets dipped on Wednesday as Chinese crude imports fell to their lowest level in a year, although traders said that overall markets remained well supported largely due to OPEC-lead supply cuts.

Brent futures, the international benchmark for oil prices, were at US$63.55 per barrel at 0434 GMT, down 14 cents, or 0.2%, but still not far off a near two-and-a-half year high of US$64.65 a barrel reached earlier this week.

U.S. West Texas Intermediate (WTI) crude was at US$56.99 per barrel, down 21 cents, or 0.4%, from their last settlement, but also still not far off the US$57.69 a barrel reached earlier this week - the highest since July 2015.