KLCI drifts lower on minor profit taking activities

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KUALA LUMPUR (June 20): The FBM KLCI drifted lower in early trade this morning on some marginal profit taking on select index-linked blue chips.

At 9.05am, the FBM KLCI shed 1.27 points to 1,665.27.

The early decliners included Fraser & Neave Holdings Bhd, PPB Group Bhd, DiGi.Com Bhd, Genting Plantations Bhd, Westports Holdings Bhd, Sarawak Consolidated Industries Bhd, Malaysia Airports Holdings Bhd, IOI Corp Bhd, Alliance Bank Malaysia Bhd and Aeon Credit Service (M) Bhd.

A gauge of global stock markets edged near this year's peak while benchmark U.S. Treasury yields and the dollar dropped after the Federal Reserve signalled possible interest rate cuts later this year, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% while Japan's Nikkei gained 0.5%, it said.

Kenanga IB Research said the Asian markets yesterday closed positively as market sentiment appears to be improving after the China/USA trade tensions appears to ease and the Euro Central Bank signalling of possible rate cuts.

Similarly, it said the FBMKLCI surged 13.78 points (+0.83%) to close at 1,666.54.

“We are now bullish on the FBMKLCI as it has broken above its 100 day SMA.

“We note that previously there were multiple failed attempts to break above it. From here, immediate resistance is at 1,670 (R1). A break above would then see it test next psychological resistance level at 1,700 (R2),” it said.