KLCI turns lower after three days of gains, oil prices rebound

  • Business
  • Wednesday, 03 Jul 2019

KUALA LUMPUR: The FBM KLCI struggled to make headway towards the psychologically important 1,700-point mark after three straight days of gains.

At 9.05am, the local benchmark index had slipped 1.91 points to 1,689.09, retreating below a technical resistance of 1,690, as the rally triggered by a US-China trade truce had all but been priced in.

The index had risen 7.38 points in the previous session to 1,691, which represented a tentative breakout of the resistance.

"From here, resistances can be found at 1,700 (R1). A break above should see the index trend higher towards 1,730 (R2)," Kenanga research noted in its technical outlook.

"Conversely, downside supports can be identified at 1,650 (S1) and 1,600 (S2)."

Trading volume on the stock exchange was 139.9 million shares valued at RM42.39mil. There were 107 gainers versus 89 decliners and 187 counters unchanged.

Stocks seeing the most trading interest were SUMATEC gaining 1.5 sen to 2.5 sen, Daya unchanged at one sen and KNM rising 0.5 sen to 30.5 sen. 

KLCI-linked heavyweights on the move included Hong Leong Financial Group climbing 12 sen to RM18.78, Petronas Dagangan putting on six sen to RM25.66, Hong Leong Bank shedding 18 sen to RM18.96 and Tenaga falling 10 sen to RM14.12.

Asian markets started on a weaker note despite a slight advance in Wall Street overnight as Washington threatened to impose additional tariffs on EU goods. 

Japan's Nikkei Index fell 0.5% while South Korea's Kospi Index dipped 0.1% and Australia's ASX200 gained 0.3%.

Oil prices meanwhile firmed up after a rout of more than 4% in the previous session as worries over a slowing economy outweighed Opec's supply cuts.

Brent crude rose 48 cents to US$62.88 a barrel and US crude gained 37 cents to US$56.62 a barrel.

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