The key FBM KLCI fell briefly below the crucial 1,600 level in afternoon trade on Monday on mounting selling pressure in line with the key Asian markets.
KUALA LUMPUR: Foreign selling of banks especially Public Bank dragged the FBM KLCI into the red on the first day of the second quarter on Monday while other key Asian markets advanced.
At 5pm, the KLCI was down 14.97 points or 0.91% to 1,628.66. Turnover was 2.63 billion shares valued at RM1.96bil. The broader market was mixed with 445 gainers, 411 losers and 378 counters unchanged.
Among the key Asian markets, China stocks jumped with the Shanghai Composite Index hitting its highest in 10 months, while blue-chips touched a one-year peak, on long-awaited signals of an economic recovery and the progress in China-US trade talks, Reuters reported.
The Shanghai Composite Index closed up 2.6% at 3,170.36, its highest point since May 2018. The blue-chip CSI300 index rose 2.6% also to 3,973.92, a level not seen since March 2018.
At Bursa, banks took a hit from the foreign selling following the lacklustre outlook with Public Bank, Hong Leong Bank, Maybank, CIMB and AmBank weighing on the KLCI.
Public Bank closed down 68 sen to RM22.48 and wiped out 4.58 points.
Analysts said foreign funds could be behind the selling of banks especially Public Bank. Of the 22 analysts covering the bank, four have buy calls while 13 have a hold call and five sell calls. The 12 month target price was RM24.49.
Maybank lost seven sen to RM9.20 and erased 1.34 points while Hong Leong Bank fell 32 sen to RM19.98 and wiped out 1.2 points, CIMB seven sen also to RM5.08, AmBank 11 sen to RM4.45 and RHB Bank eight sen to RM5.62.
IHH Healthcare lost seven to RM5.57 and erased 2.04 points, Tenaga four sen to RM12.62 while Genting Bhd
and GentingM were four sen lower at RM6.60 and RM3.16. Sime Darby shed one sen to RM2.22.
PPB Group gained eight sen to RM18.40, Sime Plantation rose six sen to RM5.08, IOI Corp one sen higher RM4.47 but KL Kepong lost 20 sen to RM24.60.
Among the oil and gas stocks, Petronas Dagangan lost 20 sen to RM24.80, Petronas Gas eight sen lower at RM17.54 and Petronas Chemical dipped four sen to RM9.12 while Dialog was unchanged at RM3.17.
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