Genting Malaysia leads KLCI lower early Friday


KUALA LUMPUR: Profit taking on Genting Malaysia led blue chips lower early Friday amid the mixed broader market, tracking the lacklustre Asian bourses while crude oil prices slipped on doubts over Opec’s planned cuts.

At 9.23am, the KLCI was down 1.07 points or 0.06% to 1,663.95. Turnover was 141.69 million shares valued at RM51.40mil. There were 150 gainers, 136 losers and 197 counters unchanged.

International oil prices dipped on Friday over doubts that a planned cut in crude production could be achieved on a scale sufficient to rebalance a market that has been oversupplied for two years, Reuters reported.

International Brent crude oil futures were trading at US$51.85 per barrel, down 18 cents, or 0.35%, from their previous close. US West Texas Intermediate (WTI) crude futures were trading at US$50.47 per barrel at 0050 GMT, up three cents from their last close.

Hong Leong Investment Bank (HLIB) Research said the KLCI might continue to lock in a sideways mode with upside bias in the near term, targeting 1,670 to 1,675 levels as the index continues to hover above the 100-day and 200-day simple moving average as well as support trend line from 1,612 levels.

However, the research house pointed out the KLCI must stage a strong breakout above these levels for a stronger upward momentum towards 1,684 to 1,700 levels. Failure to do so will witness KLCI to head lower back to 1,645-1,656 range territory.

“With the US December Federal Reserve rate hike probability largely priced in (Bloomberg poll: 65%), KLCI is likely to lock in range bound consolidation mode within 1,645-1,675 levels, awaiting major outcomes from the upcoming Budget 2017 (Oct 21) and the US Presidential election (Nov 8).

Genting Malaysia fell eight sen to RM4.83 as analysts suggested investors take profit. KLCC lost seven sen to RM7.76 and Hong Leong Industries lost six sen to RM9.24 in thin trade.

Heineken was the top loser, down 16 sen to RM17.30. 

Nexgram rose 0.5 sen to 6.5 sen with 11 million shares done on fresh corporate news.

Nexgram has teamed up to build PR1MA homes in Gombak and it also accepted a letter of intent to be the main subcontractor for the proposed construction of 462 apartments in Bukit Katil, Melaka under the 1Malaysia Civil Servants Housing (PPA1M) scheme.

Perisai was unchanged at seven sen after the recent hammering ahead of its Practice Note 17 classification.

BAT rose 40 sen to RM48.22 after falling the previous day, Dutch Lady added 18 sen to RM60.08.

KESM gained 11 sen to RM8.91, Tien Wah and Magni Tech eight sen higher at M8.91 and RM2.10 while Press Metal gained six sen to RM4.42.
MISC rose seven sen to RM7.68 and PPB Group added six sen to RM16.34.

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