KUALA LUMPUR: Blue chips started Tuesday on a weak note, with the FBM KLCI falling more than eight points on selling of key stocks including Petronas Dagangan, UMW and Genting Bhd
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At 9.34am, the KLCI was down 8.44 points or 0.52% to 1,626.45. Turnover was 265.63 million shares valued at RM110.75mil. There were 137 gainers, 216 losers and 212 counters unchanged.
Lafarge Cement fell the most, down 21 sen to RM8.25 after dismal earnings. Kenang Investment Research said the 1Q16 performance was highly impacted by cement margin compression and one-off Holcim integration costs.
Petronas Dagangan lost 20 sen to RM23.32, Genting and BAT 18 sen each to RM10.46 and RM49.82 while UWM lost 11 sen to RM5.54. MAHB and Genting were down seven sen each to RM6.24 and RM8.50.
However, Hwang Capital jumped 38 sen to RM2.59 after it received a voluntary takeover offer from chairman and controlling shareholder Hwang Lip Teik and Hwang Enterprises Sdn Bhd to acquire all remaining shares for RM2.65 cash per share or about RM470mil.
Atur Maju managed to extend its gains for the second day after the selloff last week, climbing 17 sen to RM4.05.
Oil prices were little changed in thin early Asian trade on Tuesday as a firmer dollar weighed on oil markets while a likely drawdown in US crude and gasoline stockpiles pointed to stronger demand ahead of the US summer driving season, Reuters reported.
US crude futures edged down four cents to US$48.04 a barrel by 0016 GMT, having settled down 33 cents in the previous session. Brent futures dipped four cents also to US$48.31 after closing down 37 cents in the previous session, with both contracts finishing with modest losses for a fourth straight session
At Bursa Malaysia, Kenanga Investment Research said that despite the KLCI closing up 6.1 points or 0.38% to 1,634.89 in tandem with regional markets on Monday, the local benchmark’s performance was still rather unexciting, underpinned by the lacklustre trading volume and negative market breadth of 451 decliners against 337 advancers.
“On the daily chart, the local bourse maintained its sideways trading pattern on the back of listless MACD histogram as well as RSI indicator.
“With much on-going headwinds coming from the highly anticipated interest rate hike by the US Fed come June and volatility in the Ringgit and crude oil prices, we reckon that investors will mostly be kept at bay this week while the FBMKLCI is still expected to trade downside-bias within 1,600-1,650 this week.
“Overhead resistance is seen at 1,640 (R1) followed by 1,650 (R2), while downside supports are noted at 1,620 (S1) and 1,600 (S2),” it said in its research note.
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