KLCI dips 0.13%, indices mixed as buying momentum drops

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KUALA LUMPUR (July 11): The FBM KLCI was down 0.13% at the midday break today, while indices on the local stock exchange were mixed.

At 12.30pm, the FBM KLCI shed 2.19 points to 1,676.78. The index had earlier in the morning risen to a high of 1,681.78.

Gainers led losers by 314 to 231, while 545 counters traded unchanged. Volume was 1.52 billion shares valued at RM968.05 million.

The indices on Bursa Malaysia were mixed with the financial services, industrial products, property and plantations in the negative zone.

The top losers included Petronas Dagangan Bhd, KESM Industries Bhd, Malaysian Pacific Industries Bhd, Time Dotcom Bhd, Petronas Gas Bhd, Public Bank Bhd, Kuala Lumpur Kepong Bhd, Rhone Ma Holdings Bhd, PPB Group Bhd and Hong Leong Bank Bhd.

The actives included KNM Group Bhd, UWC Bhd, My EG Services Bhd, Ikhmas Jaya Group Bhd, Kim Hin Joo (M) Bhd and Dolomite Corp Bhd.

The gainers included British American Tobacco (M) Bhd, Kluang Rubber Company (Malaya) Bhd, Magni-Tech Industries Bhd, Pestech International Bhd, Power Root Bhd, Frontken Corp Bhd and UWC.

Asian stocks gained and the US dollar drooped on Thursday after Federal Reserve Chair Jerome Powell reinforced prospects of a US interest rate cut later this month, according to Reuters.

In an appearance before his congressional overseers on Wednesday, Powell confirmed that the US economy is still under threat from disappointing factory activity, tame inflation and a simmering trade war, it said.

Affin Hwang Capital Research said the FBM KLCI Index edged lower in yesterday's trading session, shedding 3.9 points or 0.23%, closing at 1,678.97.

"Price fell about 8 points towards a low of 1,674.13 before paring some losses, recouping around half of the losses.

"Drop in buying momentum can clearly be seen for the past two weeks as price began to show signs of congesting sideways. This is supported by the early weakness shown in key daily indicators.

"Anticipate the index to move sideways with downward bias," it said.