KLCI rally tapers, TNB succumbs to profit-taking

  • Business
  • Friday, 21 Jun 2019

KUALA LUMPUR: The FBM KLCI put on slight gains in the morning session as its rally tapered off following a three-day advance.

Despite a strong performance by Wall Street last night, the local benchmark index put on only 1.3 points to 1,676.73.

Analysts have turned bullish on the market following a break above the 100-day simple moving average.

"From here, immediate resistance is at 1,690 (R1). A break above would then see it test next psychological resistance level at 1,730 (R2). 

"Conversely, downside supports are identified at 1,650 (S1) and 1,600 (S2)," said Kenanga research in its technical outlook.

Trading volume on the local stock exchange was 1.19 billion shares valued at RM991.4mil. There were 369 advancers versus 317 decliners and 356 counters unchanged.

Meanwhile, Asian markets succumbed to profit-taking in light of the recent bullishness, with most key indices dipping into the red.

Tempering the positive turn in investors' appetite was the prospect of ecalating tensions in the Middle East after Iran reportedly shot down a US surveillance drone last night.

The Shanghai Composite Index shrugged off the news, rising 0.6%, while the CSI300 Index gained 0.3%.

Japan's Nikkei Index dropped 0.75% while Hong Kong's Hang Seng Index slipped 0.3% and South Korea's Kospi Index fell 0.3%.

Back home, stocks under the spotlight were Mestron falling 0.5 sen to 15 sen, IWcity gaining six sen to RM1.10 and Ekovest edging one sen higher to 85.5 sen.

On the KLCI, Tenaga Nasional ended four-day push and lost 18 sen to RM13.70. However, Sime Darby Plantation offset the index losses with a 19 sen advance to RM4.97.

Other stocks seeing some notable price action were Petronas Chemicals adding six sen to RM8.43 and CIMB climbing five sen to RM5.28.

In the commodities market, oil prices were briefly pushed higher in morning trade before slipping into the red. The prospect of military conflict following Tehran's attack on the US drone triggered concerns over supply from the region.

However, by midday, US crude had dropped 15 cents from the previous session to US$56.92 a barrel. Brent crude held relatively firm, shaving one cent to US$64.44 a barrel.

The ringgit meanwhile slipped 0.1% against the US dollar to 4.1510 and 0.1% against the Singapore dollar to 3.0613. It was flat against the pound sterling at 5.2742. 

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