KLCI dips as Telekom Malaysia and Public Bank drag

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KUALA LUMPUR (Feb 27): The FBM KLCI dipped in early trade this morning weighed by index-linked blue chips including IHH Healthcare Bhd, Telekom Malaysia Bhd and Public Bank Bhd.

At 9.05am, the FBM KLCI fell 3.37 points to 1,715.63.

The early losers included Kuala Lumpur Kepong Bhd, Genting Plantations Bhd, IHH Healthcare, Petronas Dagangan Bhd, Malaysian Pacific Industries Bhd, Sime Darby Plantation Bhd, CSC Steel Bhd, Telekom Malaysia and Public Bank.

Asian stocks edged higher Wednesday, with positive sentiment kept in check after a Wall Street advance fizzled as investors found little in Federal Reserve Chairman Jerome Powell’s Congress testimony to extend the recent rally. The dollar held overnight losses and Treasuries steadied, according to Bloomberg.

Equities posted modest gains in Sydney, Seoul and Tokyo. Earlier, the S&P 500 Index dropped in the final hour of trading to close in the red after Powell warned that growth looked uneven and policy makers will be patient on interest-rate adjustments. The pound extended gains spurred by a promise from U.K. Prime Minister Theresa May for a vote to delay Brexit if her proposed deal fails, it said.

Kenanga IB Research said yesterday’s Asian stock markets closed lower as trade talk enthusiasm among investors seems to have tapered down.

It said on the local front, the FBMKLCI declined 5.58 points (-0.32%) to close at 1,719.00

“We believe the overall longer-term technical outlook of the index is still positive given that the index has decisively broken above its 100-day SMA even though some healthy retracement is imminent.

“Continued buying momentum could see the index trend higher to its resistances at 1,780 (R1) and 1,800 (R2).

“Should there be negative developments from the trade talks, support levels can be identified at 1,700 (S1) and 1,630 (S2),” it said.