Most chip, tech stocks in the red

KUALA LUMPUR: Most chip makers and tech related stocks were in the red early Wednesday on mild profit taking after the mixed overnight close on Wall Street.

At 9.09am, the FBM KLCI was down 1.04 points or 0.06% to 1,622.92. Turnover was 1.70 billion shares valued at RM278.84mil. There were 300 gainers, 233 losers and 350 counters unchanged.

Asian stocks edged lower at the open as investors weigh the strength of the economic recovery in anticipation of the Federal Reserve’s policy statement, Bloomberg reported.

Benchmark Treasury yields hovered near their highest levels in over a year. Equity benchmarks headed lower in Japan, Australia and South Korea. U.S. equity futures fluctuated.

Reuters reported the S&P 500 ended lower on Tuesday, weighed down by energy and industrial stocks as investors awaited the result of the Federal Reserve's two-day policy meeting.

Wall Street has recently benefited from optimism about a US$1.9 trillion fiscal stimulus package and ongoing vaccination drives that have bolstered views that the economy is on a path to recovery.

The Dow Jones Industrial Average fell 0.39% to end at 32,825.95 points, while the S&P 500 lost 0.16% to 3,962.71. The Nasdaq Composite edged up 0.09% to 13,471.57.

Oil prices fell for a third day on Tuesday, as Germany, France and other European states suspended the use of a major coronavirus vaccine, threatening the recovery of fuel demand.

Brent crude fell 49 cents to settle at US$68.39 a barrel, while U.S. crude dropped 59 cents to end at $64.80 a barrel.

At Bursa on Tuesday, local retail investors were net buyers at RM126.9mil but local funds were net sellers at RM105.4mil and foreign funds at RM21.4mil.

TA Securities Research expects range bound trade to persist on Wednesday pending the outcome of US Fed meeting, while oil & gas related stocks slip into profit-taking consolidation mode, which will be healthy to neutralise overbought momentum.

“On the index, tougher hurdles to overcome profit-taking resistance will be at 1,640,1, 660 and 1,680. Key chart supports cushioning downside will be from the rising 10-day moving average at 1,613, then 1,600, followed by the 100-day and 200-day moving averages at 1,591 and1,564, respectively, ” it said.

On Tuesday, the price of crude palm oil peaked at RM4,247.50 per tonne, an all-time high in Malaysia’s palm oil industry history, compared with RM4,193 per tonne recorded on Thursday, which was the highest in 13 years.

MPI fell 46 sen to RM36.28, Kobay 18 sen to RM4.78, Unisem 11 sen to RM7.19, UWC eight sen to M5.45 and Greatec seven sen to RM5.

However, KESM rose 18 sen to RM12 and Vitrox eight sen to RM14.80.

Toyoventure lost 24 sen to RM2.91 and its warrants 13 sen to RM1.49.

Time dotCom rallied 50 sen to RM14.38 on its bonus issue plan.

Petronas Dagangan added 20 sen to RM20.50, MNRB 12 sen to RM1.45, LPI 10 sen to RM13.70, PPB Group and MyEG eight sen each to RM18.80 and RM2.07.

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