KLCI down on profit taking after rising to record high

KLCI down on profit taking after rising to record high
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KUALA LUMPUR (April 20): The FBM KLCI declined 7.43 points or 0.4% today as investors took profit after the index closed yesterday at its record high. Today, Malaysian shares fell with world equities
after Taiwan Semiconductor Manufacturing Co Ltd (TSMC) reduced its revenue target to the low end of forecasts in anticipation of softer demand for smartphones.

At Bursa Malaysia today, the KLCI closed at 1,887.75 at 5pm while Bursa Malaysia's technology index fell 1.13 points or 3.44% to 31.7.
TA Securities Holdings Bhd technical analyst Stephen Soo said KLCI's pull-back is “healthy” from a technical perspective as the index is still sitting above the important support level of 1,880 points.

“The next hurdle is at 1,921 points, followed by 1,946 points,” Soo told theedgemarkets.com. Yesterday, the KLCI closed at its record high at 1,895.18, which was not far from its all-time intraday high at 1,896.23 seen in July 2014.

Across Bursa Malaysia today, 605 counters declined versus 254 which advanced. Total trading volume was RM2.44 billion shares worth RM2.16 billion.

Asian shares fell. Japan’s Nikkei 225 fell 0.13% while South Korea’s Kospi lost  0.39%. In China, Hong Kong's Hang Seng dropped 0.94% while the Shanghai Stock Exchange Composite was 1.47% lower.

Reuters reported that Asian shares slipped on Friday as a warning on smartphone demand from the world's largest contract chipmaker TSMC slugged the tech sector, while high oil prices stirred inflation fears and undermined sovereign bonds.

"The big story for the APAC (Asia Pacific) region today will be fallout from TSMC's (profit) miss, which will weigh heavily on the tech sector, with first order impacts on the Semis and Samsung Electronics/ Galaxy supply chain," Reuters quoted analysts at JPMorgan as saying in a note.