KLCI to drifts lower as regional markets pause

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KUALA LUMPUR (Feb 26): The FBM KLCI drifted marginally lower in early trade this morning, in line with the pause at most regional markets.

At 9.05am, the FBM KLCI was down 0.30 points to 1,724.28.

The early decliners included Petronas Dagangan Bhd, MI Technovation Bhd, PPB Group Bhd, DKSH Holdings (M) Bhd, New Hoong Fatt Holdings Bhd, Deleum Bhd, Wah Seong Corp Bhd, Boustead Plantations Bhd, Atta Global Bhd and Dufu Technology Bhd.

The pound climbed to near four-week highs on Tuesday on a report U.K. Prime Minister Theresa May could seek to delay a Brexit deadline while Asian shares paused at a five-month peak on signs Washington and Beijing were making progress on a trade deal, according to Reuters.

Sterling jumped to $1.3149 in early Asian trade after Bloomberg reported May was expected to allow her Cabinet to discuss extending the Brexit deadline beyond March 29 at a crunch meeting later in the day, it said.

Kenanga IB Research said Asian stock markets ended mostly higher yesterday following a statement from President Donald Trump on the delay of hike in tariffs on Chinese goods.

It said back home, the FBM KLCI gained 3.16 points (+0.18%) to close at 1724.58.

“We believe the overall outlook of the index has turned positive given that the index has decisively broken above its 100-day SMA despite seeing some short-term retracement or consolidation possibility.

“Continued buying momentum could see the index trending higher to its resistances at 1,800 (R1) and 1,830 (R2).

“Should there be negative developments from the trade talks, support levels can be identified at 1,700 (S1) and 1,630 (S2),” it said.