KLCI dips as ringgit slides vs USD

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KUALA LUMPUR (June 8): The FBM KLCI dipped at mid-morning as the ringgit slid against the US dollar and fell 1.06% to 3.7585.

At 10am, the FBM KLCI lost 9.24 points to 1,736.09.

The top losers included British American Tobacco (M) Bhd, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Hong Leong Financial Group Bhd, Dutch Lady Milk Industries Bhd, Tasek Corporation Bhd, Tenaga Nasional Bhd, C.I Holdings Bhd, Batu Kawan Bhd and Genting Plantations Bhd.

The top actives included Hubline Bhd, APFT Bhd, Xinghe Holdings Bhd, Frontken Corportation Bhd, K-One Technolony Bhd, IFCA MSC Bhd and Nexgram Holdings Bhd.,

The gainers included United Plantations Bhd, Tahps Group Bhd, Panasonic Malaysia Manufacturing Bhd, Tasco Bhd, Petronas Dagangan Bhd, KPJ Healthcare Bhd and Sarawak Oil Palms Bhd.

An index of Asian shares slipped on Monday, while the dollar stuck close to a 13-year high against the yen hit after upbeat U.S. employment data raised bets that the U.S. central bank would raise interest rates as early as September, according to Reuters.

U.S. nonfarm payrolls jumped 280,000 last month, the largest gain since December, while payrolls for March and April were revised to show 32,000 more jobs were created than previously reported, the Labor Department said, it said.

Hong Leong IB Research said given the subdued trading sentiment and lack of fresh catalysts, the FBM KLCI is likely to resume its consolidation for a while.

“However, the FBM KLCI is envisaged to form interim supports at 1715-1733 gap recorded on 15 Dec, ahead of the mid-year window dressing activities.

“For a resumption of uptrend, the FBM KLCI must swiftly recapture the immediate resistance near 1769 (50% FR) and 1778 (mid Bollinger band),” it said.