KUALA LUMPUR: Blue chips traded lower early Tuesday, dragged down by losses in heavyweight Sime Darby but the broader market was mixed with volume nearly one billion shares in one hour as traders chased penny stocks and lower liners linked to technology and oil and gas related counters.
At 10am, the KLCI was down 1.38 points or 0.08% to 1,738.14. Turnover was 988.57 million shares valued at RM321.54mil. There were 309 gainers, 256 losers and 350 counters unchanged.
Hong Leong Investment Bank (HLIB) Research said in tandem with the cautious mode overseas, the KLCI could be trapped in range bound consolidation pattern within the 1,725 to 1,760 zones in the short term.
“Also, given the recovering Brent crude oil prices approaching US$56, we may anticipate trading interest to pick up within oil and gas this week,” it said.
Crude oil climbed to a five-week high on Tuesday, with prices underpinned by tensions following a US missile strike on Syria and a shutdown at Libya's largest oilfield.
Additional support also came from expectations of strong demand as the U.S. summer driving season kicks in, Reuters reported.
Brent crude futures, climbed to their highest since March 7 at $56.16 a barrel. US West Texas Intermediate (WTI) was trading six cents higher at $53.14 a barrel.
At Bursa, Sime Darby lost six sen to RM9.28 with 289,300 shares done.
Nestle fell the most, down 20 sen to RM79.80, Heineken eight sen lower at RM18.18 and Kawan Foods five sen down at RM4.45.
HCK lost nine sen to RM4.86, KLCC and Pentamaster lost seven sen each to RM7.93 and RM2.62. HL Industries shed five sen to RM9.45.
REV jumped 16 sen to RM1.08 with 4.95 million shares done, Perstima added 14 sen to RM7.74, Malayan Flour and Superlon gained seven sen each to RM1.58 and RM3.56. Genting Bhd
rose seven sen to RM9.34 and Kerjaya five sen up at RM2.93.
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