KUALA LUMPUR (Dec 17): The FBM KLCI drifted lower at the noon break today against the backdrop of firm regional markets as technical indicators for the local index continued to point downwards.
At 12.30pm, the FBM KLCI shed 2.68 points to 1,566.67. The index had earlier risen to a high of 1,573.29.
Losers led gainers by 326 to 227, while 494 counters traded unchanged. Volume was 1.19 billion shares valued at RM730.7 million.
The losers included Panasonic Manufacturing Malaysia Bhd, Dutch Lady Milk Industries Bhd, Petronas Dagangan Bhd, Nestle (M) Bhd, Petronas Gas Bhd, Malaysian Pacific Industries Bhd, Hong Leong Bank Bhd, PPB Group Bhd and MISC Bhd.
The actives included Ekovest Bhd, AT Systematization Bhd, Rimbunan Sawit Bhd, TDM Bhd, Tiger Synergy Bhd, DGB Asia Bhd, Iskandar Waterfront City Bhd and JKG Land Bhd.
The gainers included British American Tobacco (M) Bhd, United Plantations Bhd, Bintulu Port Holdings Bhd, Genting Plantations Bhd, Heineken Malaysia Bhd, UMC Holdings Bhd, Public Bank Bhd, IGB Bhd and Rapid Synergy Bhd.
Asian shares rose to their highest in more than a year on Tuesday, as trade deal optimism and Wall Street's run to all-time highs supported sentiment, while familiar fears of a hard Brexit knocked the pound, according to Reuters.
The mood carried MSCI's broadest index of Asia-Pacific shares outside Japan up 0.6% to its highest since July 2018. Japan's Nikkei hit its firmest in more than a year, Hong Kong's Hang Seng rose almost a percent, it said.
Affin Hwang Capital Research said the FBM KLCI fell 1.81 points or 0.12%, to close at 1,569.35 on Monday.
According to the research house, technical points to consider are:
- On the daily time frame, moving average convergence divergence (MACD) continues to converge but has not cross above the Signal line yet while relative strength index (RSI) and Stochastic have exited oversold territories, now pointing upwards.
- The index has rebounded from the 1,550 level, establishing the level as a valid support area.
- As price is still making lower highs and lower lows, downtrend remains.
"Overall, remain view that the current rebound seen in the index anticipated to be short-lived as overall trend is still pointing downwards.
"Major down trend remains. 'Window dressing' play likely to unfold in the near term," it said.