FBM KLCI retreats on profit-taking after recent gains

KUALA LUMPUR: Profit-taking prompts midday weakness in the FBM KLCI after recent gains.

At lunch break, the market bellwether declined 4.8 points, or 0.34% to 1,391.09. The index earlier slipped to its intra-morning low of 1,388.85.

There were 298 gainers, 389 losers and 358 counters traded unchanged on the Bursa Malaysia. Turnover stood at 1.34 billion shares valued at RM718.7mil.

Malacca Securities thinks the buying could still be selective after many of the heavyweights have made large strides.

“We believe that near-term focus will be centred towards the state elections which will provide further impetus for the key index’s as well as the lower liners recovery,” it said.

Malacca Securities said the plantation sector is expected to head higher in tandem with the sharp rebound in CPO prices.

“We reckon that the technology sector may continue to leverage on the strong performance on Nasdaq overnight. Elsewhere, utilities sector will be supported by the moderating coal prices as we as recovery in business activities,” it added.

Meanwhile, Rakuten Trade anticipates the FBM KLCI to trend within the range of 1,395-1,405 range for today.

“We reckon financials and tech stocks may experience continuous buying support despite market undertone to stay cautious ahead of Bank Negara’s meeting tomorrow,” it said.

Among the losers, F&N lost 54 sen to RM25.26, Heineken Malaysia fell 30 sen to RM26.18 and Hextar Technologies slid 28 sen to RM27.70.

Malaysian Pacific Industries jumped 60 sen to RM28.80, Batu Kawan rose 28 sen to RM21.28 and Nestle gained 20 sen to RM132.

Among the banks, Maybank fell five sen to RM8.70, Public Bank declined three sen to RM3.91, AmBank lost three sen to RM3.66 and RHB Bank eased two sen to RM5.43.

CIMB rose five sen to RM5.21 while Hong Leong Bank unchanged at RM18.90.