KLCI drifts lower in line with regional pause

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KUALA LUMPUR (March 14): The FBM KLCI drifted lower in early trade this morning, in line with the pause at regional markets.

At 9.05am, the FBM KLCI  fell 1.39 points to 1,676.85.

The decliners included Fraser & Neave Holdings Bhd, British American Tobacco (M) Bhd, Petronas Dagangan Bhd, Hong Leong Financial Group Bhd, QL Resources Bhd, PPB Group Bhd, LPI Capital Bhd. Axiata Group Bhd and DiGi. Com Bhd.

Asian shares paused on Thursday as investors awaited data from China for clues about the health of the world's second largest economy while the pound shot up to near nine-month highs as the risk of a no-deal Brexit receded following a late-night vote, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed at 522.38 points. Japan's Nikkei jumped 0.6 percent while Australian and New Zealand shares each added 0.2 percent, it said.

Kenanga IB Research said Asian stock markets closed mostly lower as uncertainties over Brexit dampens investors’ sentiment.

The research house said that bucking the trend, the FBM KLCI gained 6.96 points (+0.42%) to close at 1,678.24, led mainly by Axiata Group Bhd (+3.94%).

“Despite the gains made, overall technical outlook still appears lacklustre as key momentum indicators are bearish.

“The index may trend lower to its support level at 1,650 (S1) and even 1,630 (S2). Conversely, immediate resistances can be found at 1,700 (R1) and 1,730 (R2),” it said.