KUALA LUMPUR: The FBM KLCI wavered early Wednesday as investors stayed on the sidelines after key Asian markets and Wall Street closed weaker overnight on geopolitical worries on the Korean Peninsula.
At 9.13am, the FBM KLCI was just up 0.02 point to 1,769.65. Turnover was 216.17 million shares valued at RM52.10mil. There were 91 gainers, 175 losers and 231 counters unchanged.
Bloomberg reported the ringgit rose to a nine-month high after the US dollar slid on lower Treasury yields and oil prices rallied overnight.
The US$/Ringgit declined 0.3% to 4.2485; lowest since Nov 10. Bloomberg said the supports were 4.2550, 4.2505, 4.2242 and resistance 4.3022, 4.3055, 4.3085.
The US dollar was on the defensive with tensions in the Korean Peninsula showing little signs of abating, Reuters reported.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.15%. Japan's Nikkei shed 0.55% and Australian stocks lost 0.3%. South Korea's KOSPI was down 0.2% and on track for its fifth straight day of losses.
Kenanga Investment Bank Research said with trading volume remaining elevated for a second day and key indicators giving off mixed readings, it expects the KLCI to remain choppy in the days ahead with an absence of clear market direction.
“Any weakness towards the 1,764 (S1) however, is likely to see some bargain hunting. However, a break below 1,750 would be highly negative, a signal of bearish trend reversal.
“Conversely, resistance levels can be found at 1,783 (R1), and higher up at 1,789 (R2),” it said.
At Bursa, Nestle rose 90 sen to RM85, Panasonic added 62 sen to RM37.90, KLCC added nine sen to RM7.88.
Petron gained seven sen to RM9.24, Hartalega
and Sarawak Oil Palm added five sen to RM6.82 and RM3.78.
Sino Hu-Ann slipped one sen to 20 sen with 21.9 million shares done after its recent winning streak due to the turn around in its financial results.
Hong Leong Bank lost 10 sen tpo RM15.36, MPI eight sen lower at RM13.70, KL Kepong six sen lower at RM24.50 while also down six sen was CN Asia to 51 sen.
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