KUALA LUMPUR: Profit taking on consumer stocks, especially Nestle weighed on the market early Thursday as the FBM KLCI slipped below the important 1,850 level, in line with the cautious key Asian bourses.
At 9.24am, the KLCI was down 7.24 points or0.39% lower at 1,849.82. Turnover was 314.37 million shares valued at RM116mil. Decliners beat advancers more than three to one or 328 losers to 102 gainers while 222 counters were unchanged.
Asian stock markets sagged broadly on Thursday while government bonds attracted safe-haven demand amid mounting investor concerns that growing trade tensions would hurt the global economy, Reuters reported.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.05%.
Meanwhile, Kenanga Research said based on the charts, the outlook for the KLCI index remains seemingly directionless in the short-term as key indicators continues to be indecisive, coupled with tepid trading volumes.
“From here, a decisive takeout of key resistance at 1,880 (R1) would signal a bullish turn in outlook, with a resistance higher up at 1,910 (R2).
“Conversely, a decisive break below 1,840 (S1) would be deemed as highly negative, paving for a potential capitulation towards 1,800 (S2),” it added.
Nestle extended its losses for the second day and dragging the other consumer stocks lower. Nestle fell RM14 to RM127, Dutch Lady
RM3 to RM67, Ajinomoto and F&N down RM1.12 each to RM22.78 and RM31.70.
Heineken lost 64 sen to RM22.10 and Carlsberg 42 sen lower at RM20.20. However, BAT rose 32 sen to RM27.82.
Petronas Gas fell 28 sen to RM17.62 and Petron 16 sen lower at RM9.51.
Plantations traded higher with Sime Plantation and PPB Group advancing six sen each to RM5.62 and RM18.48.
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