Weak close for KLCI as Genting sold off

KUALA LUMPUR: Blue chips came under selling pressure throughout Thursday, with Genting Bhd erasing 2.4 points from the FBM KLCI, in line with the weaker broader market and key regional bourses.

Negative news about Genting's associate TauRX Pharmaceuticals Ltd’s unsuccessful experimental results for its Alzheimer’s drug, LMTX, also weighed on the share price. Also dragging down the market was the slump in crude oil prices.

At 5pm, the KLCI was down 5.06 points or 0.3% to 1,658.50. Turnover rose to 2.22 billion shares valued at RM1.85bil. The broader market was weak with decliners beating advancers 467 to 300 while 350 counters were unchanged.

The ringgit was mixed against the key currencies, up against the US dollar to 4.0495 from the previous close of 4.0790 while it was higher against the Singapore dollar at 3.0036 from 3.0062. However, it slipped against the pound sterling to 5.3481 from 5.3469 and weakened against the Euro to 4.5023 from 4.4868.

AllianceDBS Research said the weaker close on Thursday which saw the KLCI slipping below the key 1,660 level saw market participants changing their “play pattern” to selling.

“Under the persistent selling pressure, the KLCI was in the red throughout the trading sessions before settling near the day’s high at 1,658.50 (-5.06, -0.30%),” it said. 

The research house said the lower low on Thursday showed that sellers were in better control over the buyers. 

“This can also be seen from the downside violation of the 1,660 level on the opening bell. Given a chance to trade, market participants apparently had chosen to play on the selling side in the absence of positive news,” it said. 

AllianceDBS Research said following the weak close, the market is expected to come under pressure to go lower with immediate support at 1,650. 

“A fall below 1,650 would send the market down to the subsequent support at 1,640. Indicator wise, the MACD is below the nine-day moving average line,” it said. 

China stocks closed up on Thursday as rises in auto stocks and industrials offset declines in financials resulting from news of a pending crackdown on stock investments by China's massive wealth management industry.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.1 percent, to 3,221.14, while the Shanghai Composite Index gained 0.1% to 2,994.32 points.

At Bursa Malaysia, Genting fell 39 sen to RM8.51 and Genting-WA lost 22 sen to RM1.68. Genting Malaysia shed three sen to RM4.40. IHH Healthcare shed three sen to RM6.59.

Brent crude oil was down 43 cents at US$43.04 per barrel while US light crude lost 12 cents to US$41.80. Both crude benchmarks hit multi-month lows on Wednesday after US government data revealed a surprise rise in crude and gasoline inventories. 

Petronas Chemical and Petronas Gas were unchanged at RM6.60 and RM22.20 while Petronas Dagangan lost six sen to RM23.30. SapuraKencana shed two sen to RM1.42.

As for banks, AmBank fell five sen to RM4.31, Hong Leong Bank and Public Bank four sen each to RM13.24 and RM19.56, RHB Bank two sen to RM5.15 while CIMB was flat at RM4.29 and Maybank gained one sen to RM8.04.

As for telcos, Axiata added three sen to RM5.70, Telekom two sen to RM6.83, Digi one sen to RM4.99 while Maxis was flat at RM6.05.

Crude palm oil for third month delivery fell RM18 to RM2,300 per tonne.Chine Tek lost 39 sen to RM7.41, IOI Corp, KL Kepong and PPB Group ended flat at RM4.25, RM23.10 and RM16. Sime Darby lost five sen to RM7.60. 

Panasonic Malaysia was the top gainer, up RM1.38 to RM38.18.

BAT fell the most, down RM1.60 to RM48.20 and extending its fall for the second day after its weak second quarter earnings.

However, Dutch Lady rose 50 sen to RM63, Ajinomoto 48 sen to RM14.48 and Apollo 14 sen to RM6.08.

TH Heavy was the second most active stock with 220.4 million shares done, ending Thursday down two sen to 20 as traders sold on news after it received a non-binding letter of intent from the Malaysian Maritime Enforcement Agency (MMEA) to supply three offshore patrol boats.
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