Profit-taking on KLCI continues into lunch break

KUALA LUMPUR: The FBM KLCI remained in the red entering midday as profit-taking pressure continued to weigh on Axiata and Digi.

At 12.30pm, the key index was down 5.73 points to 1,606.52.

While investors taking cash off the table was expected given the previous week's advance, analysts believe the ongoing momentum could continue for the time-being.

"While overall market breadth may remain broadly mixed, the benchmark index will probably range bound with a marginal upward bias.

"On the chart, after overcoming the 25-day SMA, the index’s tentative crossing back above the 50-day SMA signals a likely continuation of its technical rebound from a short-term bottom," said Kenanga Research in its technical outlook.

It expects the FBM KLCI to swing between 1,600 and 1,645 ahead while the next support support and resistance thresholds are now positioned at 1,550 and 1,675 respectively.

On the blue-chip index, after descending to a low of RM3.89 in early trade, Axiata ended the morning 17 sen lower at RM3.94.

Digi had slid to RM4.12 before bouncing back to RM4.34, or 12 sen lower than Friday's close.

Investors have been taking a step back from high valuations following a three-day winning streak in the previous week's trading.

Glove maker Hartalega has been inching lower after last Thursday's price surge. The counter was down 18 sen to RM9.71.

Top Glove however seemed to have stabilised after last Friday's profit-taking, rising three sen to RM5.26.

Of actives, Luster rose 0.5 sen to 26 sen, LKL gained three sen to 40.5 sen and Hiap Teck added 0.5 sen to 51.5 sen.

Meanwhile, Asian markets looked shaky ahead of the US corporate earnings season.

Japan's Nikkei dropped 0.5% while South Korea's Kospi stayed flat and China's composite index fell 0.8%.

Meanwhile, Hong Kong's Hang Seng slid 1% and Australia's ASX200 shed 0.3%.
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Bursa Malaysia , FBM KLCI , equities


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