KUALA LUMPUR: Blue chips were treading water early Tuesday in directionless trade as investors were staying on the sidelines, awaiting leads from local funds while key Asian markets fell.
At 9.42am, the KLCI was up 0.57 point or 0.03% to 1,685.62. Turnover was 361.59 million shares valued at RM164.72mil. There were 210 gainers, 149 losers and 213 counters unchanged.
Reuters reported Asian shares dropped as sentiment remained fragile in the face of tense trade relations between the United States and major economies, with investors braced for another potentially rocky day for Chinese markets.
Investors, worried the trade row could derail a rare period of synchronised global growth, have pulled out of riskier assets in the past month or so.
The Asia Pacific MSCI index ex-Japan dropped 0.66% on early Tuesday trade, while Japan's Nikkei average was little changed. In China, the Shanghai Composite Index shed 0.23% and the blue chip CSI300 index fell 0.19%.
Kenanga Research said the KLCI still remains technically weak, having little signs of a possible near-term relief.
“Trend lines are highly negative, with key SMAs currently in a state of a 'Death Cross'.
"From here, continued sell-down could bring the index down to its support at 1,615 (S1) – last retested in late 2016. Should a positive turnaround occur, resistances can be found at 1,720 (R1) and possibly 1,760 (R2),” it said.
Aeon Credit rose 26 sen to RM14.90 while HLFG added 12 sen to RM17.76 and Top Glove advanced 12 sen also to RM12.18.
However, profit taking saw F&N falling 22 sen to RM38.86, Oriental Holdings 18 sen to RM6.02, PLB 12 sen to RM1.48, Axiata eight sen to Rm3.97. Tenaga was down six sen to RM14.54 while IOI Corp and VS Industry shed four sen each to RM4.54 and RM1.57.