FBM KLCI opens lower on profit-taking

KUALA LUMPUR: Bursa Malaysia extended yesterday's profit-taking to open lower amid lack of catalysts on the local front.

At 9.011am, the FBM KLCI lost 4.31 points to 1,593.64. Turnover stood at 376 million units valued at RM197.6mil.

Overnight, the Dow Jones Industrial Average rose 0.27%, to 34,955.89, the S&P 500 gained 0.71%, to 4,575.52 and the Nasdaq Composite added 1.31%, to 14,354.90.

Hong Leong Investment Bank said after surging 35.1 points in two weeks, the FBM KLCI slipped 5.4 points to 1,598 on profit taking.

“Barring a decisive breakdown below 30D MA near 1,587, we remain cautiously optimistic that the index may revisit 1,600-1,620 levels, albeit in a choppy move. A successful break out above

1,620 will lift the index to retest 14M high at 1,642.

“On the flip side, falling below 1,585 will drive KLCI lower again toward 1,565 (38.2% FR) and 1,545 (200D MA) levels,” it said.

JF Apex Research said the FBM KLCI could take a breather from last week's gains and consolidate below the resistance of 1,620 points.

Among the top losers, Nestle tumbled RM1.20 to RM134.80, Petronas Dagangan lost 66 sen to RM20.70, Hong Leong Financial Group fell 40 sen to RM19.44 and Kuala Lumpur Kepong eased 26 sen to RM25.06.

Heineken added 20 sen to RM22.40, Complete Logistics rose 12 sen to RM3.57 and Bursa Malaysia climbed eight sen to RM6.90.