KLCI drifts lower as Public Bank and Top Glove weigh

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KUALA LUMPUR (Feb 21): The FBM KLCI drifted lower in early trade this morning against the backdrop of mixed regional markets, weighed by index-linked Public Bank Bhd and Top Glove Corp Bhd.

At 9.05am, the FBM KLCI shed 1.25 points to 1,724.93.

The losers included MSM Malaysia Holdings Bhd, Sime Darby Plantation Bhd, QL Resources Bhd, Public Bank. Petronas Chemicals  Group Bhd and Top Glove.

Asian stocks traded mixed Thursday and Treasury yields were little changed after Federal Reserve meeting minutes hinted at an enduring bias for rate hikes. The Australian dollar climbed as jobs data topped estimates,according to Bloomberg.

Japanese and Korean shares slipped while their Australian counterparts fluctuated. The S&P 500 Index closed slightly higher after the Fed was seen remaining patient in its approach to further hikes without ruling them out if economic growth picks up. The yuan built on overnight gains despite some analysts warning that there’s little room for it to appreciate much further amid bets the authorities will keep the currency steady. The yen ticked higher, while the dollar was little changed, it said.

Kenanga IB Research said Asian stock markets closed mostly higher yesterday as President Trump hinted once again that a key trade deadline may be pushed back.

It said back home, the FBMKLCI gained 19.62 points or 1.15% to close at 1,726.18.

“Chart-wise, we note that the index has formed two long bullish candlesticks, having broken above its 100-day SMA which could indicate a shift in momentum.

“Key momentum indicators have also started to show positive signals further suggesting potential upside.

“From here, continued positive global developments could lead the index trend higher to its resistances at 1,730 (R1) and 1,800 (R2). Should the index trend lower, support levels can be identified at 1,650 (S1) and 1,600 (S2),” it said.