Friday 29 Mar 2024
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KUALA LUMPUR (Oct 2): The FBM KLCI fell at the midday break today, as selling persisted on the back of weaker factory orders in September.

At 12.30pm, the FBM KLCI fell 2.72 points to 1,752.86. The index had earlier risen to its intra-morning high of 1,758.15.

Losers led gainers by 390 to 216, while 429 counters traded unchanged. Volume was 1.21 billion shares, valued at RM603.07 million.

The top losers included British American Tobacco (M) Bhd, Lafarge Malaysia Bhd, Panasonic Manufacturing Malaysia Bhd, Telekom Malaysia Bhd. KLCC Property Holdings Bhd, Hong Leong Industries Bhd, SP Setia Bhd, KESM Industries Bhd and Far East Holdings Bhd.

The actives included Mlabs Systems Bhd, Borneo Oil Bhd, Sterling Progress Bhd, DBE Gurney Resources Bhd, Trive Property Group Bhd, Tiger Synergy Bhd, Sumatec Resources Bhd and UMW Oil & Gas Corp Bhd.

The gainers included Malaysian Pacific Industries Bhd, Multi-Usage Holdings Bhd, Dutch Lady Milk Industries Bhd, Public Bank Bhd, Hengyuan Refining Company Bhd, Thong Guan Industries Bhd, Matrix Concept Holdings Bhd, Glomac Bhd and Malaysia Airports Holdings Bhd.

Reduced new orders in the manufacturing sector in September dragged down the Nikkei Malaysia Manufacturing Purchasing Managers’ Index (PMI) slightly to 49.9, following a marked improvement in August which recorded 50.4.

According to a report by IHS Markit which compiles the survey, new orders continued to decline, amid reports of weak demand from domestic and international sources. The report said output growth slowed to a fractional pace.

The euro took a knock in Asia on Monday, as investors kept an anxious eye on an independence vote in Spain's Catalonia, although surprisingly strong economic news out of China and Japan, offered support to equities and commodities, according to Reuters.

The euro fell 0.3% after the violence-marred vote to trade at US$1.1773, with liquidity lacking, given holidays in China and South Korean markets, Reuters added.

CIMB Retail Research said the FBM KLCI index continued on its losing streak last week, closing down for the second week running.

It said this week, the index may stage a technical rebound, after ‘suffering’ from the 8-to-10 consecutive black candles rules.

“If a rebound does occur, then look for the 30-day & 50-day EMAs to act as resistance in the near term.

“However, the overall sentiment remains under pressure, as the Index broke below the neckline of its triangle formation, which is negative for the index.

“Traders may want to trade cautiously. Resistance: 1,770 & 1,780. Support: 1,750 & 1,743,” the research house said.

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