KLCI dips on mild profit taking

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KUALA LUMPUR (Nov 3): The FBM KLCI slipped into negative territory at the midday break on Monday as some mild profit taking chipped off its earlier gains.

At 12.30pm, the local index shed 1.95 points to 1,853.20. The index had earlier risen to its intra morning high of 1,858.09.

The top losers included BAT, Petronas Gas, United Plantations, LPI Capital, KLCC, KLK, Allianz, Aia Brands and Perstima.

The actives included Dagang Nexchange, Century Software, IFCA MSC, KTB, Ni Hsin, Nexgram and Tiger Synergy.

The gainers included Nestle, Hume Indsustry, Tasco. Dutch Lady, Lagarge Malaysia, Tenaga, Lyesaght, Hong Leong Industries, F&N and Tasek.

Regionally, the U.S. dollar powered to seven-year peaks against the yen on Monday and a two-year high on the euro, a punishing trend for commodities priced in dollars, with both gold and silver falling sharply,according to Reuters.

Disappointing surveys out of China's manufacturing and services sectors highlighted the relative health of the U.S. economy, and piled pressure on other countries to ease monetary policy yet further, it said.

Hong Leong IB Research said that on the back of record highs on Wall St last Friday and the spillover effect from BOJ’s surprised stimulus measures, teh FBM KLCI may witness further rebound in the early part of this week.

“Nevertheless, profit taking activities are likely to emerge following a sharp 5% rally from recent low of 1766 (FIG2) ahead of the BNM policy meeting on 6 Nov and the start of Nov reporting season, given the grossly overbought slow stochastics.

“Weekly resistances are near 1860-1870 zones whilst supports fall on 1,840-1,850 levels,” it said.