KUALA LUMPUR: Blue chips slipped in early Wednesday trade on some profit taking, in tandem with the key Asian markets, as crude oil prices slipped from the five-week highs.
At 9.30am, the KLCI was down 2.48 points or 0.15% to 1,697.41. Turnover was 356.75 million shares valued at RM142mil. There were 169 gainers, 196 losers and 280 counters unchanged.
Reuters reported oil prices fell away from five-week highs early on Wednesday, as analysts doubted a successful outcome from producer talks to rein in ballooning oversupply.
International Brent crude oil futures were trading at US$48.85 per barrel at 0018 GMT, down 38 cents from their last settlement.
US West Texas Intermediate (WTI) crude futures were at US$46.30 per barrel, down 28 cents from their last close, but are still up about 18% from early August.
On the outlook for Bursa, Hong Leong Investment Bank (HLIB) Research said the KLCI, after testing its 1,700 target on Tuesday, the KLCI daily and weekly slow stochastic indicators have turned increasingly overbought, which could signal potential profit taking correction in the coming days.
“Key supports are 1,684 (61.8%) and 1,675 (resistance-turned-support of July 19 high),” it said.
HLIB Research said the overnight fall on Dow and hawkish comments by Fed officials coupled with toppish KLCI daily and weekly slow stochastic indicators might see short term profit taking consolidation.
“However, any pullback will be well absorbed in anticipation of more stimulus-driven measures by global key central banks and government, the return of higher yield seeking funds into emerging markets and rebound in crude oil and palm oil prices coupled with the stabilising Ringgit,” the research house said.
BAT fell the most, down 46 sen to RM51.54 while Heineken lost eight sen to RM18.58. However, Dutch Lady
rose 58 sen to RM63.90 and F&N added 22 sen to RM24.74.
Petronas Gas lost 14 sen to RM22.12 and Petronas Dagangan eight sen lower at RM23.42.
The stronger ringgit saw export-driven Top Glove shedding 10 sen to RM4.39.
As for plantations, Genting Plantations fell eight sen to RM10.52 and heavyweight Sime Darby lost six sen to RM8.20.
Dnex rose 1.5 sen to 24 sen in active trade of 87 miion shares done and the warrants added 0.5 sen to eight sen.
Dnex’s 2QFY16 net profit surged nearly 23-fold on-year to RM89.5mil, thanks to its associate company, Ping Petroleum Ltd.
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