KLCI drops 0.28% as select index-linked stocks led by Petronas counters drag

KLCI drops 0.28% as select index-linked stocks led by Petronas counters drag
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KUALA LUMPUR (June 24): The FBM KLCI dropped 0.28% in mid-morning trade today as select index-linked stocks, led by Petroliam Nasional Bhd (Petronas) counters, dragged against a backdrop of mixed regional markets.

At 10am, the FBM KLCI was 4.2 points lower at 1,502.84.

Gainers led losers by 344 to 261, while 388 counters traded unchanged. Trading volume was 1.48 billion shares valued at RM491.38 million.

The top losers included Petronas Dagangan Bhd, Fraser & Neave Holdings Bhd, Ajinomoto (Malaysia) Bhd, Petronas Gas Bhd, Hap Seng Consolidated Bhd, IHH Healthcare Bhd and Maxis Bhd.

The actives included Trive Property Group Bhd, MQ Technology Bhd, AT Systemization Bhd, DGB Asia Bhd, Iris Corp Bhd, Tadmax Resources Bhd, Hubline Bhd and NetX Holdings Bhd.

The gainers included Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Dutch Lady Milk Industries Bhd, Chin Teck Plantations Bhd, Mega First Corp Bhd, Panasonic Manufacturing Malaysia Bhd, KESM Industries Bhd, Allianz Malaysia Bhd and Pentamaster Corp Bhd.

Bloomberg said Asian stocks drifted at the open today, while US futures were flat and the US dollar slipped as investors monitored a continuing acceleration in Covid-19 cases across the American Sun Belt.

Japan’s Topix opened lower, while Korean shares advanced and Australian ones saw a modest rise. The US dollar headed for a third straight day of declines. Treasuries were flat. New Zealand’s dollar may be in focus when the central bank decides on policy later today. Yesterday, the S&P 500 closed well off its earlier 1.2% gain on reports that a surge in cases in several hotspots in the south and south-west of the US threatened to derail plans to ramp up reopenings. Still, the Nasdaq Composite hit another all-time high, it was reported.

Hong Leong Investment Bank Research said barring a successful reclaim above the key 200-day simple moving average (SMA) at 1,513 and and 1,535 (the long-term resistance trend line drawn from the 1,896 high), the odds are still in favour of more consolidation ahead for the KLCI.

“A decisive breakdown of the 1,490 (June 15's low) support would signal a deeper correction is in place, compounded by fluidity of the local political scene and the expiry of the short-selling ban on June 30.

“Nevertheless, hope for mid-year window dressing is likely to cushion the sell-off with lower support at 1,450-1,470 levels,” it said.