KUALA LUMPUR: Blue chips extended their decline early Thursday, dragged down by losses in Petronas Gas, as investors took profit but Iskandar Waterfront City Bhd
(IWC) surged in active trade.
At 9.41am, the KLCI was down 2.01 points or 0.12% to 1,723.53. Turnover was 704.91 million shares valued at RM308.86mil. There were 203 gainers, 284 losers and 304 counters unchanged.
On the external front, Reuters reported the US dollar stood firm in Asia on Thursday and bond yields spiked after super-strong US jobs data made a rate hike a near certainty, while oil nursed bruising losses as U.S. stockpiles swelled past all expectations.
With energy stocks on the run, MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.25%. Japan's export-heavy Nikkei took heart from a softer yen and added 0.3%.
Oil plunged 5% on Wednesday to the lowest this year as US crude inventories surged much more than expected to a record, offsetting OPEC's attempts to limit its output, Reuters reported.
Kenanga Investment Bank Research said after the slight pullback on Bursa Malaysia on Wednesday – where the KLCI closed down 3.12 points to 1,725.54 - the index could look to consolidate further in the immediate term.
“The reluctance for the benchmark index to climb above the 1,730 mark after several attempts the past few days also reinforced the consolidation play ahead.
“Range bound trade within 1,720 (S1)-1,730 (R1) for the remainder of the week is expected. Next level of resistance and support is seen at 1,744 (R2) and 1,710 (S2), respectively,” said the research house.
On Wednesday, foreign funds were net buyers again but at a lower volume of RM28.64mil and local funds also following suit as net buyers at RM22.31mil. Local retailers were net sellers at RM50.95mil.
UMW fell 13 sen to RM5.82 and PPB Group lost 12 sen to RM16.74 with 100 shares each.
Petronas Gas lost 10 sen to RM19.70 and SK Petro six sen lower at RM1.97. Petron was down 14 sen to RM5.96 with 114,800 shares traded.
F&N was the top loser, down 18 sen to RM24.32 but BAT added 20 sen to RM47.56 while Ajinomoto and Carlsberg rose six sen each to RM14.76 an RM14.20.
IW City rose seven sen to RM1.71 with 52.67 million shares done. Iskandar Waterfront Holdings Sdn Bhd (IWH) had proposed to merge with IWC.
IWC will take over the listing status of IWC in a share swap. The ratio is on the basis of one IWC share to be exchanged for one share in an enlarged IWH.
Hap Seng added six sen to RM9.08.
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