KUALA LUMPUR: Plantation stocks fell in early trade on July 9 with KL Kepong among the decliners, dragged down by weaker outlook for crude palm oil prices while crude oil slipped to US$60 per barrel.

At 10am, FBM KLCI was down 5.93 points to 1,059.54. Turnover was 80.73 million shares valued at RM123.78 million. There were 125 gainers, 102 decliners and 117 counters unchanged.

Among key Asian markets, Japan’s Nikkei 225 fell 0.55% to 9,368.69, Shanghai’s Composite Index advanced 0.51% to 3,096.4 while Singapore’s Straits Times Index rose 1.49% to 2,293.51 and Hong Kong’s Hang Seng Index opened 0.2% to 17,747.58.

OSK Investment Research said it was surprised to see how the market came back from the day-low and closed less than one point lower.

It said the broader market was obviously weak yesterday with 335 losers against 188 winners. Many stocks also exhibited obvious signs of losing steam.

“Yesterday’s surprisingly strong performance of the FBM KLCI did not alter the bearish technical landscape at all.

“It still looks like the FMB KLCI is starting to construct a lower-high and the risk remains high that the market is going to re-test the 50-day MAV line for the second time,” it said.

OSK Research said a break below the 50-day MAV line would see the market facing massive selling pressure similarly to the previous breakdown from the 20-day MAV line.

Meanwhile, the research house maintained its bearish view towards the near-term market. We will likely see the sellers selling more aggressively and confidently at below the 50-day MAV line,” it added.

OSK Research said to the upside, continue to look for an immediate resistance at the 20-day MAV line, which is now

situated at the 1,070 level, followed by the 200-week MAV line, which is  now lying at the 1,097 level.

To the downside, it was still eyeing an initial support at the “Downside Gap” ranging from the 1057-level to the 1,064-level. The next support is seen at the 50-day MAV line, or the 1,050 level, followed by the 1,028-level.

Among the decliners were KL Kepong, down 40 sen to RM11.40 , PPB fell 20 sen to RM11.70 and UMCCA 10 sen lower to RM7.30.

Southern Acids fell 11 sen to RM1.29, Loh and Loh 10 sen to RM4.40 while down 10 sen also were DiGi and BCHB to RM22.10 and RM9.05.

KNM was the most active with 6.9 million shares done, unchanged at 73.5 sen.