KUALA LUMPUR (Oct 16): The FBM KLCI started off on a muted note this morning against teh backdrop of modest gains at regional markets, as key index-linked heavyweights dragged.
At 9.05am, the FBM KLCI shed 1.13 points to 1,727.61.
The top losers included British American Tobacco (M) Bhd, Nestle (M) Bhd, Petronas Chemicals Group Bhd, Westports Holdings Bhd, Malayan Banking Bhd, TSH Resources Bhd, CIMB Group Holdings Bhd, Mi Equipment Holdings Bhd, MISC Bhd and Globetronics Technology Bhd.
Asian stocks chalked modest gains at the open Tuesday as U.S. equity index futures advanced, with investors balancing the outlook for global growth and earnings against geopolitical flareups and technical weakness. The dollar touched a two-week low against peers, while Treasury yields steadied, according to Bloomberg.
Share indexes rose in Japan, Australia and South Korea, and futures ticked higher in China and Hong Kong. Earlier in the U.S., the tech-heavy Nasdaq indexes led losses and the S&P 500 Index slipped, holding near the 200-day moving average. The dollar’s dip came ahead of a U.S. Treasury currency-manipulation report expected this week. Oil remains in focus amid tensions between Saudi Arabia and the U.S. over the disappearance of a prominent journalist. Gold held gains while the yen was little changed, it said.
Hong Leong IB Research in a traders’ brief said Dow is likely to lock in brief consolidation mode on the back of upcoming US mid-term election and ongoing 3Q18 earnings season.
“Nevertheless, 4Q18 and 2019 earnings could be affected by rising input costs, stronger USD, higher borrowing costs and escalating trade wars. Key supports are 24200-24800 while resistance are near 26000-26300 levels.
“Risk off mode prevails due to external headwinds (i.e. stormier global growth outlook, heightened trade tensions and ongoing geopolitical concerns, tighter financial conditions, wobbly stock markets, vulnerable EM currencies etc) and lack of local rerating catalysts (i.e. slowing economy and corporate earnings growth, expectations of a “belt-tightening budget 2019” on 2 Nov).
“Key supports are 1683-1700 while resistances are located near 1738-1755 territory,” it said.