KUALA LUMPUR: Blue chips wavered early Thursday on Bursa Malaysia as investors drew to the sidelines following the strong US dollar on the back of strong economic data.
At 9.25am, the FBM KLCI had dipped 0.38 of a point or 0.02% to 1,795.92. Turnover was 313.77 million shares valued at RM164.15mil. There were 198 gainers, 176 losers and 234 counters unchanged.
Reuters reported the US dollar climbed an 11-month top on the yen as stunningly strong US economic data drove Treasury yields to their highest since mid-2011, while Japanese stocks attempted to re-claim a 27-year peak.
The Nikkei added 0.4% on bets the falling yen would boost sales and profits at Japan's many exporters.
Higher US yields are anything but favourable for emerging markets, however, as they tend to draw away much-needed foreign funds while pressuring local currencies, Reuters reported.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.3% in response.
On the outlook for the KLCI, Kenanga Research said chart-wise, the underlying uptrend remains intact as the index continues to trade above most of its key SMAs.
"We note that the index is trending below its short-term 20-day SMA, possibly indicating some near-term retracement.
"Nonetheless, we expect the index to hold at support levels 1,790 (S1) and 1,765 (S2), close to its 100-day SMA, which has proven to be act as a fairly resilient support. Meanwhile, resistances can then be found at 1,825 (R1) and 1,865 (R2)," it said.
F&N fell the most, down 48 sen to RM37.26, MAHB lost 14 sen to RM8.64, Padini 11 sen lower at RM5.79, Petron 10 sen to RM8.40 and Hartalega
seven sen lower at RM6.47. PPB Group and LC Titan lost six sen each to RM16.80 and RM4.75.
BAT rose 32 sen to RM32.82, Aeon Credit 30 sen to R16, Vitrox 20 sen to RM8.50 while Petronas Gas added and HLFG added 16 sen each to RM19.16 and RM19.40. Press Metal gained 10 sen to RM5.06, Pos nine sen to RM3.55 and Alcom 7.5 sen to 65.5 sen.
Gabungan AQRS warrants WB jumped 30 sen to 30.5 sen.
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