KLCI sees profit-taking on the heels of previous strong finish

KUALA LUMPUR: The FBM KLCI drifted lower on profit-taking on Monday following a strong rally in the previous week.

At 12.30pm, the local index was down 6.38 points to 1,675.85. Trading volume was 918.34 million shares valued at RM657.82mil. There were 446 decliners compared to 212 gainers and 331 counters unchanged.

Despite the morning retreat, analysts believe sentiment on the local market has turned bullish following signs of global policymakers gravitating towards monetary easing. 

Sime Darby Plantation led the decline with a 12 sen drop to RM4.84 while Axiata lost eight sen to RM4.97 and Tenaga Nasional fell eight sen to RM13.82.

On the wider market, Sapura Energy rose one sen to 31.5 sen, PHB lost 0.5 sen to one sen and Nice jumped 1.5 sen to 4.5 sen.

Elsewhere in the region, markets traded close to the previous session close as investors look forward to a meeting between US President Donald Trump and Chinese premier Xi Jinping at the G20 Summit this Friday.

The Shanghai Composite and CSI300 indices were flat at midday while Hong Kong's Hang Seng Index rose 0.2%.

Japan's Nikkei Index was up 0.15% and South Korea's Kospi Index gained 0.1%.

Oil prices meanwhile rose on the back of supply concerns as Washington announced that it would enforcing "significant" sanctions on Iran for its recent attack on a US surveillance drone.

US crude advanced 41 cents to US$57.84 a barrel and Brent crude added 30 cent at US$65.60 a barrel.

The ringgit trended higher  on the rising oil prices, rising 0.1% to 4.1450. It fel 0.4% to 5.3850 against the pound sterling and was mostly flat against the Singapore dollar at 3.0612.