KLCI drifts lower as Top Glove, Tenaga drag

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KUALA LUMPUR (March 11): The FBM KLCI drifted lowe in early trade this, dragged by Top Glove Corp and Tenaga Nasional Bhd, against the backdrop of mixed regional markets.

At 9.05am, the FBM KLCI shed 0.67 points to 1,679.23.

The early decliners included Serba Dinamik Holdings Bhd, Hengyuan Refining Company Bhd, Hong Leong Industries Bhd, Amtek Holdings Bhd, Top Glove Corp Bhd, Malaysian Pacific Industries Bhd, Tenaga Nasional Bhd and Favelle Favco Bhd.

Asian stocks kicked off Monday mixed following the worst week for global equities since mid-December. The dollar nudged up after Friday’s retreat, according to Bloomberg.

Shares in Japan and South Korea posted modest gains, while those in Australia slipped back. Ten-year Treasury yields were little changed near their lowest in two months as Federal Reserve Chairman Jerome Powell reiterated he is in no hurry to change interest rates. S&P 500 Index futures ticked lower after U.S. stocks dipped Friday on mixed U.S. employment data. The pound retreated as another key Brexit vote looms in parliament, on Prime Minister Theresa May’s revised deal, it said.

Kenanga IB Research said Asian markets plunged last Friday after ECB slashed its growth forecasts added to increasing worries about the global outlook.

It said on the local front, the FBM KLCI slipped 7.05 points or 0.42% to close at 1,679.90, indicating week-on-week losses of 1.2%.

“Key momentum indicators are tapering off with the index currently trading below key SMAs, suggesting that the bull is losing its strength.

“We reckon that the local index is likely continuing its tepid trade over the week in the absence of fresh domestic catalyst coupled with uncertain global sentiment.

“Should there be negative developments from the trade talks, support levels can be identified at 1,650 (S1) and 1,630 (S2) further down. Conversely, overhead resistances are still capped at 1,780 (R1) and 1,800 (R2),” it said.