KLCI, most key Asian markets in the red

KUALA LUMPUR: Bursa Malaysia saw a follow through in selling pressure at midday which took the benchmark index lower. 

At midday, the FBM KLCI eased 3.78 points, or 0.21% to 1,790.29. The benchmark index moved between 1,775.72 and 1,782.09 throughout the session.

On the broader market, losers thumped gainers 554 to 217, while 337 counters were unchanged. Turnover stood at 799.77 million shares worth RM809.92mil 

Analysts said the local bourse was likely to trend sideways for the rest of today. They added that investors were taking profit ahead of the approaching long weekend. 

Overnight, the US markets tumbled dragged by energy counters following decline in oil prices. Similarly, European stocks ended lower as oil price hit a seven-month low and Bank of England Governor’s comment that rates are unlikely to rise anytime soon.

“Following the bearish performance in the US and Europe, the FBM KLCI could extend its decline towards the support of 1,760 points,” JF Apex said.

PublicInvest said the FBM KLCI might open without much fanfare today after global equities ended mostly lower overnight.

Meanwhile, Hong Leong Investment Bank Research (HLIB) said share prices on Bursa Malaysia would see continuation of profit taking activities across the board with the weaker crude oil price.

“Traders may deploy selling-into-strength strategy with the spillover of negative sentiments from the overseas markets. The FBM KLCI’s upside is likely to be pegged around 1,800, while  the support will be located around 1,780 followed by 1,760,” HLIB said. 

Among the top gainers on Bursa Malaysia, Vitrox and Hong Leong Financial Group added 24 sen each to RM7.67 and RM17.38 respectively. Ajinomoto gained 22 sen to RM22.80 and Time Dotcom rose 19 sen to RM9.60.

The decliners included British American Tobocca, United Plantations and Petron.

Among the key regional markets:

Japan’s Nikkei 225 fell 0.44% to 20,142.22;

Hong Kong’s Hang Seng Index eased 0.49% to 25,716.39;

Shanghai Composite Index fell 0.01% to 3,139.76;

Taiwan’s Taiex gained 0.24% to 10,349.72;

South Korea’s Kospi fell 0.01% to 2,356.05 and;

Singapore’s Straits Times Index is eased 0.65% to 3,209.39 points.