Profit-taking on KLCI continues into lunch break

KUALA LUMPUR: The FBM KLCI retreated into the negative territory at lunch break Thursday as it succumbed to mild profit-taking.

At 12.30pm, the key index was down 0.87 of-a-point, or 0.06% to 1,454.11. The index opened 2.98 points higher at 1,457.96.

Mercury Securities expects Malaysian equities to be volatile in the short term due to uncertainty surrounding the global economy as well as other geopolitical factors.

Overnight, the Dow Jones Industrial Average rose 0.01%, to 31,839.11, the S&P 500 lost 0.74%, to 3,830.6 and the Nasdaq Composite dropped 2.04%, to 10,970.99.

Rakuten Trade reckoned the local bourse to continue with its uptrend attributed to the easing US yields which will relieve fears of higher interest rates regionally.

“As such, we expect the index to hover between the 1,450-1,465 level today with buying interests returning to banks,” it said.

Meanwhile, Brent crude climbed above the US$95/barrel on a weaker US dollar despite the slowing global demand.

On Bursa Malaysia, Hextar Technologies rose 40 sen to RM10.70, Ajinomoto added 34 sen to RM11.42, Batu Kawan gained 24 sen to RM21.50 and ViTrox advanced 21 sen to RM7.22.

Malaysian Pacific Industries fell 18 sen to RM24.60, Kuala Lumpur Kepong lost 14 sen to RM22.28, Betamek eased 13.5 sen to 57.5 sen and Chin Hin declined 11 sen to RM2.76.

Reuters reported that MSCI's broadest index of Asia-Pacific shares outside Japan was 1.59% higher and set for third straight session of gains.

Japan's nikkei was down 0.19% at 27,379.40 by the midday break.