KLCI drifts lower, select blue chips weigh

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KUALA LUMPUR (March 15): The FBM KLCI drifted lower in early trade this morning, weighed by select index-linked blue chips.

At 9.10am, the FBM KLCI shed 0.95 points to 1,673.57.

The early decliners included Nestle (M) Bhd, Petronas Dagangan Bhd, Teck Guan Perdana Bhd, MISC Bhd, Petronas Chemicals Group Bhd, IHH Healthcare Bhd, Scientex Bhd, Lii Hen Industries Bhd and Advance Information Marketing Bhd.

Asian stocks were mostly higher Friday, building on this week’s gains despite concerns over a delayed U.S.-China trade deal. Treasuries steadied and the dollar held gains, according to Bloomberg.

Equities in Japan and Korea rose, were little changed in Australia and futures pointed to small declines when Hong Kong opens. Earlier, the S&P 500 spent most of the session fluctuating between gains and losses in thin trading, before edging lower at the close. News that a meeting to end the trade war with China won’t happen this month had weighed on sentiment. The pound steadied as Prime Minister Theresa May won the endorsement of British politicians to seek to delay Brexit day. The yen edged lower ahead of the Bank of Japan’s policy announcement, it said.

Kenanga IB Research said Asian stock markets were mixed on Thursday, as optimism after British lawmakers rejected a no-deal Brexit was tempered by poor industrial output data from China.

It said on local front, the FBM KLCI down 3.72 points (-0.22%) to close at 1,674.52.

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