KLCI falls towards 1,550 support on trade war rhetoric

  • Markets
  • Wednesday, 04 Dec 2019

KUALA LUMPUR: The FBM KLCI headed for its support of 1,550 as US President Donald Trump pushed on with trade war rhetoric and threatened to delay a scheduled Dec 15 first-stage agreement with China.

Over Wednesday morning, the index fell to as low as 1,551.06 points before rebounding slightly to close the early session 10.12 points lower at 1,552.15.

Trading volume was 1.2 billion shares with turnover of RM721.55mil. There were 481 decliners, 224 gainers and 354 counters unchanged.

The FBM KLCI has returned to a six-week trading low. The last time the index was trading at these levels was in August 2015.

Following the decline, the index has fallen further beneath its key simple moving averages. However, Kenanga research anticipates the possibility of a rebound given the oversold conditions of its technical indicators.

"From here on, overhead resistance can be seen at 1,630 (R1) and 1,650 (R2). Conversely, key support levels can be found at 1,550 (R1) and 1,540 (R2)," it said.

Of the 30 stocks listed on the KLCI, 24 were in negative territory. Banks and telcos, being among the most heavily weighted counters, led the decline.

Public Bank dropped 24 sen to RM1922, CIMB fell six sen to RM6.98, Hong Leng Bank slid four sen to RM16.72 while Maybank edged one sen lower to RM8.50.

Maxis cut nine sen to RM8.11 and Digi lost eight sen to RM4.54. However, Axiata rose three sen to RM4.21.

Sime Darby gained three sen to RM2.31 while IOI added two sen to RM4.41.

On the broader market, top active counters included Impiana unchanged at 2.5 sen, Mudajaya up 5.5 sen at 40 sen and Alam Maritim down 0.5 sen at 13 sen.

Some active gainers included IGBB jumping 22 sen to RM3.62, MB World up 11 sen to RM1.56 and United Plantation rising 10 sen to RM25.60.

On the opposing end F&N fell 24 sen to RM34.06, Chintek dropped 22 sen to RM6.30 and Dutch Lady shed 20 sen to RM50.80.

Oil prices rose on Wednesday ahead of an Opec meeting that will determine if production cuts will be extended to support the market. US crude was up 41 cents to US$56.51 a barrel and Brent crude gained 48 cents to US$61.30 a barrel.

In currencies, the ringgit was down 0.1% to 4.1790 against the greenback. It also fell 0.15% against the pound sterling at 5.4298 and 0.1% against the Singapore dollar at 3.0620.

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