KLCI drifts lower as IHH Healthcare, Tenaga drag

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KUALA LUMPUR (May 30): The FBM KLCI drifted lower this morning, against the backdrop of mixed regional markets, weighed by losses included at IHH Healthcare Bhd and Tenaga Nasional Bhd.

At 9.05am, the FBM KLCI  shed 1.66 points to 1,622.01.

The early losers included IHH Healthcare, Perusahaan Sadur Timah Malaysia Bhd, Hume Industries Bhd, Wang-Zheng Bhd, MSM Malaysia Holdings Bhd, Sime Darby Plantation Bhd, Hap Seng Consolidated Bhd, Prestar Resources Bhd and Tenaga Nasional.

Asian equities were mixed Thursday after concerns about global growth sent U.S. shares lower overnight. Treasury yields steadied near their lowest since 2017, according to Bloomberg.

Shares in South Korea clawed back some of Wednesday’s slide, while Japanese and Australian stocks slipped. S&P 500 Index futures nudged higher after the benchmark closed at the lowest since March. The 10-year Treasury yield was at 2.27% after falling as low as 2.21% in the prior session. The yield gap between three-month and 10-year Treasuries, often watched as an early signal of pending recession, slid to a 2007 low Wednesday. The dollar edged higher, near a five-month high, it said.

CIMB Retail Research the benchmark FBMKLCI closed 9.1pts or 0.56% higher yesterday.

It said the positive sentiment was partially boosted by the upgrade of the Malaysian stocks by HSBC and UBS.

“The index broke out of the downtrend line. Coupled with positive indicators, the index would likely test the 50-day EMA of 1,633 today.

“A strong break above 1,633 would spur prices higher towards the 1,670-1,680 zones.

“Nevertheless, the expected bounce could be capped as the tit-for-tat US and China and weak corporate earnings trend may act as a drag on market sentiment. Resistance: 1,633 & 1,644. Support: 1,610 & 1,590,” it said.