KLCI down on extended profit-taking, banks weigh

KLCI down on extended profit taking, banks weigh

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KUALA LUMPUR (Oct 29): The FBM KLCI fell at mid-morning today on extended profit-taking, while losses at index-linked banking stocks also weighed on the market.

At 10am, the FBM KLCI lost 8.08 points to 1,678.43.

The top losers included Lafarge Malaysia Bhd, AMMB Holdings Bhd, Malayan Banking Bhd, Sime Darby Bhd, IHH Healthcare Bhd, Negri Sembilan Oil Palms Bhd, Genting Bhd, CIMB Group Holdings Bhd and Genting Malaysia Bhd.

The actives included XOX Bhd, KNM Group Bhd, Sumatec Resources Bhd, Genetec Technology Bhd, Privasia Technology Bhd and Trive Property Group Bhd.

The gainers included N2N Connect Bhd, Asia File Corporation Bhd, Hong Leong Financial Group Bhd, P.I.E. Industrial Bhd. KESM Industries Bhd and Oriental Food Industries Bhd.

Asian shares edged lower and the dollar stood tall on Thursday, after the US Federal Reserve rekindled market expectations that it might still be on track to raise interest rates by year end, according to Reuters.

US Treasury yields and the dollar rose while Wall Street initially sold off and then reversed, after the Fed made an explicit reference in its statement at the end of its two-day policy meeting to conditions necessary "to raise the target range at its next meeting". Reference to a particular meeting is rare for the US central bank, it said.

Hong Leong IB Research said despite the overnight rallies at Wall Street and Europe markets that can provide a temporary lift to the FBM KLCI, extended profit-taking was likely to cap near-term upside on Bursa Malaysia given the bearish daily indicators, weak ringgit and expectations of another lackluster 3Q15 reporting season in November.  

“Key upside hurdles are 1,700–1,729 while supports fall on 1,670,” it said.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)