KLCI dips 0.35% in line with regional weakness

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KUALA LUMPUR (July 22): The FBM KLCI fell 0.35% in early trade this morning, tracking cautious regional markets, dragged by select blue chips.

At 9.15am, the FBM KLCI fell 5.77 points to 1,652.42.

The early decliners included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Tenaga Nasional Bhd, PPB Group Bhd, Aeon Credit Service (M) Bhd, Maxis Bhd and IJM Plantations Bhd.

Stocks in Asia kicked off the week on a cautious note as traders dialed back expectations on the size of Federal Reserve easing later this month. Oil gained amid tensions in the Persian Gulf, according to Bloomberg.

Japanese and Australian shares dipped after soaring Friday, while South Korean equities were little changed. Futures on the S&P 500 Index were flat after U.S. markets closed lower Friday. Traders rushed away from bets the Fed will slash rates by a half-point this month after dovish comments from two senior officials spurred a rally in Asian stocks on Friday. Oil rose 1% in early Monday trading ahead of an emergency meeting by U.K. officials to discuss the security of shipping in the Persian Gulf after Iran seized a British oil tanker in the Strait of Hormuz last week, it said.

Affin Hwang Capital Research said the FBMKLCI Index ended last week on a positive note, gaining 9.26 points or 0.56%, closing at 1658.19.

“Market breadth was positive with 505 gainers as compared to 311 losers.

“Trading volume was at 2.49 billion shares while value traded stood at RM1603.7 million.

“Last week, market started off on a muted note with price trading sideways around the EMA20d for a couple of days. Moving towards the middle of the week, sellers began to make their move as the index fell almost 20 points, breaking below all of the key daily EMAs. However, price did stage a slight rebound, ending the week on a green note.

“Anticipate our local market to weaken further this week in line with weakness seen in the global market,” it said.