KUALA LUMPUR: Blue chips slipped in early Wednesday trade as cautioned prevailed after the overnight fall on Wall Street as key Asian markets also retreated on news the quantitative easing would be wound up.
At 9.48am, the FBM KLCI was down 2.82 points or 0.17% to 1,658.43. Turnover was 365.35 million shares valued at RM152.16mil. There were 135 gainers, 231 losers and 261 counters unchanged.
Asian shares and gold retreated on Wednesday and bond yields were near two-week highs after markets were rattled by a report flagging the possible withdrawal of global stimulus measures, Reuters reported.
Hong Leong Investment Bank Research (HLIB) said despite a 8.7-point rebound on Tuesday, KLCI is still unable to reclaim above the critical 200-day simple moving average (1,665) and 50-day SMA (1,671) support-turned-resistance levels, clouded the near term recovery outlook.
"Technically, indicators are still pointing for short term KLCI range bound consolidation with key supports at 1,639-1,645 while resistances fall on 1,671-1,684 territory," it said.
However, HLIB Research said despite overnight Dow’s fall, it still expects KLCI to stage a technical rebound this week, despite nagging uncertainty over the Fed rate hike and potential weakening in the ringgit versus the US dollar.
“Key supports remain at 1,640 to 1,645 levels, which are cushioned by firmer oil prices, potential pre-Budget rally and the readiness of Bank Negara Malaysia to support economic growth via easing,” it said.
RHB Bank led the banks lower, down seven sen to RM4.62. Among the plantations, Batu Kawan fell 16 sen to RM18.02 and PPB Group lost 12 sen nto RM16.02.
Petronas stocks also fell led by Petronas Gas which shed eight sen to RM21.76 and Petronas Chemicals seven sen lower at RM6.63. Retailer Petron Malaysia
added 10 sen to RM4.23.
Ajinomoto fell 16 sento RM13.16 and BAT gave up 12 sen to RM48.96. However, Nestle added 98 sen to RM79.98 with 500 shares done.
Southern Steel led steel players lower, down nine sen to RM1.20.
BHIC rose 13 sen to RM1.80 in rising active trade while Tasco advanced five sen to RM1.57.
Among the active stocks Perisai fell 0.5 sen to 8.5 sen, which is a historic low over its debts issue while Lion Corp lost half its value, down 0.5 sen to 0.5 sen in active trade ahead of its delisting.
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