KLCI dips on profit taking in line with region

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KUALA LUMPUR (Sept 10): The FBM KLCI dipped on profit taking at mid-morning today in line with the downrend at most regional markets.

At 10am, the FBM KLCI was down 11.66 points to 1,591.70.

The top losers included Kuala Lumpur Kepong Bhd, Public Bank Bhd, Lafarge Malaysia Bhd, Hong Leong Bank Bhd, Far East Corporation Bhd, Malayan Banking Bhd, Hong Leong Financial Group Bhd and Ibraco Bhd.

The most active counters included AirAsia Bhd, IFCA MSC Bhd, APFT Bhd, Frontken Corporation Bhd, AirAsia X Bhd and Privasia Technology Bhd.

The gainers included MISC Bhd, Genting Plantations Bhd, British American Tobacco (M) Bhd, Sasbadi Holdings Bhd, LPI Capital Bhd and Boustead Holdings Bhd.

Asian stocks fell on Thursday after U.S. stocks retreated overnight and as Japan machinery orders unexpectedly shrank, deflating investors' appetite for riskier assets, according to Reuters.

Concerns about slowing global growth also weighed on sentiment, with the New Zealand dollar tumbling after its central bank cut interest rates and signalled it may ease further, citing weakening demand and uncertainty over policy in the United States and China, it said.

Hong Leong IB Research said it was of the view that more strengths were needed to sustain above the psychologically crucial 1,600 level due to lack of fresh catalyst and lingering internal and external concerns.

“Our technical view for the FBM KLCI is that recent rebounds were not sufficient to alter current downtrend despite its grossly oversold condition.

“Hence, we are suggesting “sell into strengths” until a clear reversal signal is seen,” it said.