KUALA LUMPUR: The local market failed to capitalise on better-than-expected US GDP growth as investors took profit off the table in the wake of last week's rebound.
At 12.30pm, the FBM KLCI fell 5.04 points on Monday morning to 1,633.34. Trading volume was 1.48 billion shares valued at RM801.45mil. There were 571 decliners, 184 gainers and 328 counters unchanged.
Local equities showed continued weakness as the investors took a step back following the previous week's 16-point advance.
Kenanga research's technical outlook suggests short-term consolidation for the coming week as the momentum indicators suggest some ongoing weakness.
"A decisive take-down of the 1660 (R1) is vital for the local index to trend upwards towards 1,700 (R2). Reluctance to go beyond R1, would see the index retrace towards 1,615 (S1) and 1,600 (S2)," it said.
The broad-based retreat on the KLCI was led by Petronas Chemicals dropping 12 sen to RM8.98, Digi shedding seven sen to RM4.48 and Sime Darby Plantation
losing six sen to RM5.06.
On the wider stock exchange, Yee Lee soared 38 sen to RM2.32 on news that its major shareholders intended to take it private.
Also seeing active interest, Sunsuria jumped following the weekend announcement that it had penned two agreements with Chinese firms to set up a smart logistics and park and automotive design hub in Malaysia.
The stock surged as much as 28.5 sen or 45% in the morning before ending the session at 80 sen per share.
G3 continued to extend its gains, putting on an additional 13 sen to RM1.75. The counter has more than doubled its share price since it began rallying on April 23.
Can-One, meanwhile, jumped 17 sen to RM3.26 on news that it had acquired 95.88% stake in Kian Joo Can Factory, forcing a compulsory acquisition of all the shares in the latter.
Meanwhile, oil prices continued to slump after US President Donald Trump demanded that Opec raise output to soften the impact of US sanctions against Iran.
US crude fell 35 cents to US$62.95 a barrel and Brent crude dropped 38 cents to US$71.77.
The ringgit held steady against the US dollar at 4.1310. it slipped 0.2% against the pound sterling at 5.3450 and 0.1% against the Singapore dollar at 3.0362.
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