KLCI dips as Asian markets skid

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KUALA LUMPUR (Sept 22): The FBM KLCI dipped at the midday break on Monday as regional markets skidded, trimming the local index’s gains.

At 12.30pm, the FBM KLCI was down 1.80 points to 1,847.69.

The top losers included Aeon Credit, Nestle, Carlsberg, KLK, Narra, Gas Malaysia, PPB, RHB Capital, KAF, Puncak Niaga and Dutch Lady.

Efficient E-Solutions Berhad is the most actively traded counter with 114.15 million shares done. The stock rose 5.63% or two sen to 37.5 sen.

The other actives included Talam Transform, Iris Corp, Compugates, Sanichi, Tek Seng, Priceworth, Globaltec, TMC life and Olympia.

The gainers included BHS, United Plantations, Shell, Metal Reclamation, Sunway, Perduren, SCIB, Fima Corp, Kossan and GD Express.

Regionally, Asian shares skidded on Monday as investors await data this week that could provide more evidence of a slowdown in China, while the dollar gave back a little of its recent gains, according to Reuters.

China's flash manufacturing PMI reading on Tuesday could come in below the 50 level, indicating that manufacturing activity is contracting, it said.

Lee Cheng Hooi, Maybank IB head of retail research and chief chartist, in a note to clients Monday said the FBM KLCI fell 6.15 points week-on-week to close at 1,849.49, as persistent selling activities led the index down last Monday.

Lee said the price recovery from Wednesday to Friday failed to lift the index to a positive close,and that he advised clients to sell at the resistance areas of 1,849 to 1,896.

“The support levels of 1,802 and 1,836 will see weaker buying activities. With the recent sell-off from 1,896.23 to 1,836.50, we advise clients to trade this recent price range.

“Small and mid-cap stocks as well as lower liners may continue to see profit taking. Most speculative issues may remain very volatile for this week,” he said.