KLCI consolidates further amid China data, US earnings

  • Business
  • Tuesday, 16 Jul 2019

KUALA LUMPUR: The FBM KLCI started the morning on a flattish note, tracking Wall Street's performance overnight as its corporate earnings season kicked off.

At 9.05am, the local benchmark index was down 0.1 points to 1,672.27. Trading volume was 154.4 million shares valued at RM66.78mil. There were 138 gainers versus 80 decliners and 189 counters unchanged.

Citibank was the first of the US's major banks to reports its earnings for the second quarter, beating expectations ahead of a slew of corporate earnings that is yet to come.

Investors are taking a more cautious approach however with the major US indices remaining little changed and Asian stocks opening to mixed sentiment. 

Chinese GDP data announced yesterday, which showed a slowing but expected result, also lent mixed feelings over the state of the global economy.

Japan's Nikkei Index was down 0.4% and South Korea's Kospi Index was flat, while Australia's ASX200 Index rose 0.1%.

On the FBM KLCI, the technical indicators continue to show weakness amid a period of consolidation.

"From here, resistances can be found at 1,700 (R1). A break above should see the index trend higher towards 1,730 (R2). 

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

KLCI heavyweights led the top decliners, including PPB shedding 14 sen to RM18.66, Tenaga dropping four sen to RM13.84, Genting Malaysia falling two sen to RM3.37 and Top Glove sliding two sen to RM4.66

The top movers minutes from the opening bell were Ekovest jumping five sen to 85 sen, IWCity rising 8.5 sen to RM1.07 and Netx unchanged at 1.5 sen.

LPI was on the move, gaining 10 sen to RM16.16 on the back of its earnings report yesterday. 

Meanwhile, Hurricane Barry passed through the Gulf of Mexico, signaling the reopening of oil refineries in the region.

Brent crude futures were down 10 cents at US$66.38 a barrel and US crude fell 10 cents to US$59.48 a barrel.

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