KLCI down 0.16% as IHH, MAHB drag

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KUALA LUMPUR (April 9): The FBM KLCI dipped 0.16% at mid-morning today, in line with the weaker regional markets, weighed by losses including at IHH Healthcare Bhd and Malaysia Airports Holdings Bhd (MAHB).

At 10am, the FBM KLCI was down 2.56 points to 1,641.79.

Gainers led losers by 275 to 236, while 320 counters traded unchanged. Volume was 938.26 million shares valued at RM457.58 million.

The decliners included Fraser & Neave Holdings Bhd, Maxis Bhd, MAHB, IHH, Ajinomoto (M) Bhd, Westports Holdings Bhd, KESM Industries Bhd and Hong Leong Bank Bhd.

The actives included Priceworth International Bhd, KNM Group Bhd, Bumi Armada Bhd, Dayang Enterprise Holdings Bhd, Perdana Petroleum Bhd, Sapura Energy Bhd, George Kent (M) Bhd, Iris Corp Bhd and Hibiscus Petroleum Bhd.

The gainers included Far East Holdings Bhd, George Kent, Can-One Bhd, Amway (M) Holdings Bhd, Petronas Dagangan Bhd, Teck Guan Perdana Bhd, Ann Joo Resources Bhd and Tong Herr Resources Bhd.

Asian shares got off to a subdued start on Tuesday as investors braced for key events later in the week, including the kick-off of the US earnings season and a crucial Brexit summit, while broader concerns over slowing global growth checked sentiment, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was basically flat after brushing its highest since late August last year during the previous session, it said.

Hong Leong IB Research said market participants will be trading on a cautious tone awaiting the conclusion on the trade deal as US President Donald Trump said a monumental agreement could come in the next four weeks.

"Also, investors will be eagerly watching the start of 1Q19 reporting season this week as consensus [is] expecting a 2.3% year-on-year drop, the first since 2016. Hence, we expect the Dow to trend range bound between the 25,900-26,450 levels this week.

"Following a sharp selloff in 1Q19, KLCI could rebound higher in April as investors anticipate a win-win deal between the US and China and green lights from the government for the ECRL, Penang Transport Master Plan and other big ticket items such as HSR (as [Prime Minister Tun Dr] Mahathir [Mohamad] and [Singapore Prime Minister Lee] Hsien Loong meet at Putrajaya this week).

"Overall, laggard construction related stocks such as Advancecon Holdings Bhd and Kimlun Corp Bhd should attract buyers again while oil & gas counters like Hibiscus and Sapura Energy stay buoyant given the sustained rise in global oil prices," it said.