KLCI dips 0.29% as momentum indicators remain sluggish

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KUALA LUMPUR (March 20): The FBM KLCI opened lower Tuesday as key momentum indicators remained sluggish, while key index-linked blue chips dragged.

At 9.05am, the FBM KLCI fell 5.04 points to 1,682.64.

The top losers included Nestle (M) Bhd, Hong Leong Bank Bhd, PPB Group Bhd, Petronas Chemicals Group Bhd, Tenaga Nasional Bhd, IOI Corp Bhd, Public Bank Bhd, Malaysia Airports Holdings Bhd, UMW Holdings Bhd and Sime Darby Plantation Bhd.

Asian stocks traded mixed early Wednesday as investors held back from making big changes prior to the Federal Reserve’s policy decision. Treasuries and the dollar steadied, according to Bloomberg.

Shares in Japan, South Korea and Australia edged lower. A rally in U.S. stocks earlier sputtered out after a report that U.S. and Chinese negotiators remain at odds on aspects of their current trade talks soured sentiment. A rally in oil stalled, it said.

Kenanga IB Research said Asian stock markets closed mostly lower as investors took a more cautious approach heading into the Fed’s policy meeting.

It said locally, the FBM KLCI declined 3.26 points or 0.19% to close at 1,687.68, as investors took profit after three consecutive trading days of gains.

“Overall technical outlook still lacks positivity as key momentum indicators remain lacklustre.

“Should the index break above the 1,700 (R1) resistance level, technical outlook would turn positive with next resistance identified at 1,730 (R2).

“Conversely, downside supports can be found at 1,650 (S1) and 1,630 (S2),” it said.