KLCI drifts lower as Genting, Axiata drag

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KUALA LUMPUR (June 25): The FBM KLCI drifted lower this morning, in line with regional markets, dragged by losses including at Genting Bhd and Axiata Group Bhd.

At 9.10am, the FBM KLCI shed 1.06 points to 1,675.07.

The decliners included Carlsberg Brewery Malaysia Bhd, Malaysian Pacific Industries Bhd, Pentamaster Corp Bhd, Apex Healthcare Bhd, YNH Property Bhd, Genting, Axiata and Sarawak Consolidated Industries Bhd.

Stocks in Asia looked set to drift Tuesday after their U.S. counterparts slipped for a second session in a lackluster session. Treasuries gained, while the dollar declined, according to Bloomberg.

Equity futures were slightly lower in Japan, Australia and South Korea. The S&P 500 posted a modest loss as energy producers dropped in the wake of new U.S. sanctions on Iran where President Donald Trump imposed restrictions on the country’s supreme leader, Ayatollah Ali Khamenei, and eight senior military commanders. The 10-year Treasury yield dropped to 2.01%. West Texas oil futures pared recent gains in early Asian trading Tuesday, it said.

CIMB Retail Research said the FBM KLCI index closed 6.1 points or 0.36% lower yesterday on profit-taking following a strong rally last week.

“A bearish harami candlestick pattern seems to be taking shape. However, this sell signal is yet to be confirmed.

“The index is currently hovering between the 200-day EMA and the long-term downtrend line from the 1,896 high.

“In this market dilemma, traders may adopt a wait-and-see trading approach. Resistance: 1,682 & 1,700. Support: 1,657 & 1,635,” it said.