KLCI dips 0.27% as key blue chips drag

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KUALA LUMPUR (May 9): The FBM KLCI dipped 0.27% in early trade this morning against the backdrop of mixed regional markets, as key blue chips dragged.

At 9.05am, the FBM KLCI  fell 4.41 points to 1,629.14.

The early losers included Carlsberg Brewery Malaysia Bhd, PPB Group Bhd, QL Resources Bhd, UEM Edgenta Bhd, Public Bank Bhd, Maxis Bhd, Press Metal Aluminium Holdings Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Hartalega Holdings Bhd and Petronas Chemicals Group Bhd.

Asian stocks were mixed amid dissonant signals on U.S.-China trade, with a deadline for the imposition of new tariffs just one day away. Treasuries steadied, according to Bloomberg.

Shares were modestly lower in Japan and South Korea, while Australia’s stock index opened flat. Futures on the S&P 500 Index edged lower after U.S. shares fluctuated for much of Wednesday. Traders sought a measure of calm after the White House suggested a deal was still possible even as both sides threatened tariff raises as soon as Friday. The dollar remained firm and fragile sentiment kept the yen near a six-week high, it said.

Kenanga IB Research said Asian stocks declined as investors took cue from Wall Street’s plunge on fears of tariffs.

It said back home, the FBMKLCI declined 5.82 points or 0.36% to close at 1,633.55.

“We observed that the index has been in a consolidation phase for the past few weeks and that the primary downtrend of the index is still intact as all shorter-term SMAs are trading below longer-term SMAs.

“However, the recently announced rate cut by BNM could be the much-needed catalyst to spur the market.

“Should the index break above the 100-day SMA, it could potentially signal a reversal. We look towards 1,660 (R1), where a break above would see it head towards the 1,700 (R2) level. Conversely, support levels can be identified at 1,615 (S1) and 1,600 (S2),” it said.