FBM KLCI starts lower today after 15.3-point rise yesterday

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KUALA LUMPUR (Aug 29): The FBM KLCI opened lower today on profit taking and as investors evaluated Malaysian corporate earnings in the current financial reporting season.

At 9am, the KLCI fell 4.88 points or 0.27% to 1,822.02. At 9:02am, the KLCI declined 5.25 points to 1,821.65 on profit taking after the index's 15.3-point rise yesterday.

Today, analysts said the KLCI is showing positive technical indicators after yesterday's rise.

Affin Hwang Investment Bank Bhd wrote in a note today: "The FBM KLCI surged higher on Tuesday (+15.3pts). Prices have broken the 1,810 immediate resistance level convincingly. Technical indicator namely MACD (moving average convergence divergence) has also crossed above the signal line (bullish). Moving forward, anticipate prices to move towards 1,875-1,900 level in the near term, which is the next target."

Malaysia's corporate financial reporting season for the April-to-June quarter is nearing its conclusion in August. The financial reporting season started in July although most companies announce their earnings in August.