Bursa Malaysia slips on continued weakness


KUALA LUMPUR: Bursa Malaysia looked set to continued to its negative momentum from the previous week amid heightened caution over political developments and shrinking trading volume on the market.

At 9.15am, the FBM KLCI was down 1.34 points to 1,600.08, as investors clung stubbornly on to the psychological support.

Investors are looking ahead to news flow over the coming week, which will include today's FTSE World Government Bond Index review, which will decide on whether Malaysia will remain on the watch list.

But there are other reasons to remain cautious as April has not been a historically good month for the market.

"Since 2011, the FBMKLCI had finished higher in April in five of the past 10 years to post an average monthly return of 0.5% during the period," said Kenanga Research in its weekly outlook.

The research house has also spotted ongoing technical weakness in the index, which could suggest further declines in the week ahead.

"Essentially, the negative momentum is expected to persist following the index’s crossing under the 25-day SMA line while the stochastic indicator is still signaling downward bias for the key market barometer.

"Hence, the FBMKLCI is expected to backslide and drop below the psychological mark of 1,600, which will likely turn it from being our immediate support line to resistance line," it said.

Kenanga has pegged its major support and resistance levels at 1,600/1,550 and 1,645/1,647 respectively.

On the FBM KLCI, declining counters included Hong Leong Financial Group slipping eight sen to RM15.74, Hartalega falling eight sen to RM9.46 and Digi down eight sen to RM3.70.

Top actively traded counters on Bursa Malaysia were Berjaya Corp up 2.5 sen to 33 sen, Inter Straits Logistics gaining 1.5 sen to 25 sen and Widad rising two sen to 57.5 sen.
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Bursa Malaysia , FBM KLCI , equities

   

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