KLCI consolidates after volatile week

KUALA LUMPUR: The FBM KLCI returned to the red in late-morning trade as the market showed signs of consolidation following the volatility experienced earlier in the week.

At 12.30pm, the key index was down 3.88 points to 1,631.83, tracking the negative Wall Street performance overnight in which the Dow Jones retreated from record levels of trading.

Malacca Securities Research forecast the profit-taking as it said the overheated rally in technology stocks may take a breather with investors digesting their gains over the next few days.

"We should be expecting the FBM KLCI to take a mild breather along EMA9 before surging higher towards the envisaged resistance around 1,650-1660," it said.

The country's two largest banks led the declines on Bursa with Maybank falling eight sen to RM8.27 and Public Bank sliding 22 sen to RM21.48.

There were some other laggards including IHH dropping 10 sen to RM5.45 and MISC sliding nine sen to RM6.59.

On the broader market, JCY's share price was pounded as investors sold down the stock on news that a major customer had reduced its orders with a view to ending its purchases with the group.The counters lid 5.5 sen to 53 sen.

Among most active stocks PNEPCB was down 5.5 sen to 44.5 sen, falling sharply for a second day as sentiment over its glove manufacturing venture soured in tandem with the demand outlook for gloves.

XOX fell 0.5 sen to 10.5 sen and AT Systemization gained 0.5 sen to 18 sen.

Meanwhile, key regional markets failed to react positive to news that US President-elect Joe Biden had proposed a US$1.9 trillion stimulus plan for the country's economy.

Japan's Nikkei was down 0.4%, China's composite index fell 0.5% and South Korea's Kospi slid 1.5%.

Hong Kong's Hang Seng was flat while Australia's ASX200 rose 0.2%.

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Bursa Malaysia , FBM KLCI , equities


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