KUALA LUMPUR (June 24): The FBM KLCI dipped 0.27% in early trade this morning against the backdrop of mixed regional markets, dragged by key index-linked stocks.
At 9.05am, the FBM KLCI fell 4.47 points to 1,677.76.
The early decliners included United Plantations Bhd, Public Bank Bhd, Magni-Tech Indusries Bhd, Tenaga Nasional Bhd, Lafarge Malaysia Bhd, Nestle (M) Bhd, Gamuda Bhd, DiGi.Com Bhd and Press Metal Aluminium Holdings Bhd.
Asian stocks looked set for a mixed start to the week amid signs a global rally is stalling. Oil climbed as the U.S. said it was planning sanctions on Iran, according to Bloomberg.
Futures in Japan pointed modestly lower, while Hong Kong contracts were little changed. S&P 500 futures opened steady after the gauge edged down Friday, pulling back from its all-time high reached in the previous session. The yen and the offshore yuan were steady. The yield on 10-year Treasuries ended last week at 2.05%. The Turkish lira surged after the opposition candidate won the redo of Istanbul’s mayoral race, it said.
Kenanga IB Research said Asian stock markets ended the week mixed, as investors sentiment was partially dampened by weak manufacturing data from Japan. Back home, the FBM KLCI gained 6.80 points or 0.41% to close at 1,682.23, representing a week-on-week gain of 2.66%.
“We expect the FBM KLCI to undergo near-term pressure or consolidation as investors may take profit after 4 consecutive long bullish candlesticks.
“However, the underlying trend of the index has turned bullish following the break above its 100-day SMA.
“From here, resistances can be found at 1,690 (R1). A break above should see the index trend higher towards 1,730 (R2). Conversely, downside supports can be identified at 1,650 (S1) and 1,600 (S2),” it said.