Weak start for Bursa Malaysia, technical outlook still bearish

KUALA LUMPUR: Bursa Malaysia extended its losses early Thursday after the weak corporate results, uncertainties in the US-China trade conflict issue while analysts are downbeat on the outlook for the FBM KLCI.

At 9.13am, the KLCI was down 3.34 points or 0.2% to 1,684.93. Turnover was 221.78 million shares valued at RM76.83mil. There were 83 gainers, 138 losers and 154 counters unchanged.

Kenanga Research said the technical outlook remains bearish as the KLCI is still hovering below the key SMAs.

“From here, immediate support levels to watch out for are 1,670 (S1) and 1,650 (S2) where a break below would complete the potential descending triangle pattern. Should the market sentiment improve, key levels of resistance to look for are at 1,740 (R1) and 1,760 (R2),” it said.

US stock index futures fell late on Wednesday, following the previous session's dramatic sell-off and lingering worries over trade and economic growth.

S&P 500 e-mini futures were last down 0.7%, with volume at 66,034 contracts, Reuters reported.

Oil prices dipped in tepid trading ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30% since October, the news wire reported.

US West Texas Intermediate (WTI) crude futures were at US$52.57 per barrel at 0109 GMT, down 32 cents, or 0.6%, from their last close. International Brent crude oil futures were down 17 cents, or 0.3%, at US$61.39 per barrel.

Petronas Gas fell 24 sen to RM19.04 but Petronas Dagangan added 30 sen to RM25.60 and Petronas Chemical gained nine sen to RM9.30.

BAT fell the most, down 66 sen to RM37 in thin trade, Ajinomoto 20 sen to RM18.80 and Nestle 10 sen to RM147.40.

QL Resources lost 17 sen to RM6.87, Hartalega 15 sen to RM6.21, MAHB 14 sen to RM7.67 and UMW 11 sen to RM5.46.

However, Astro advanced nine sen to RM1.38 in active trade. CIMB Equities Research expects Astro to deliver stronger earnings in FY20F driven by lower content cost and positive contributions from home shopping.

Techbond, which was listed on the Main Board on Wednesday, rose two sen to 88 sen.

HLFG advanced 24 sen to RM19.62, Digi 17 sen to RM4.46, MPI 14 sen to RM10.64, Maxis 12 sen to RM5.50 and HL Ind 11 sen to RM9.20.