KLCI edges lower as plantations, banks weigh

-A +A

KUALA LUMPUR (Jan 16): The FBM KLCI edged down in early trade on Friday, in line with the retreat at most regional markets and the lower overnight close at Wall Street.

At 9.01am, the FBM KLCI fell 4.02 points to 1,740.98, weighed by index-linked plantation and banking stocks.

The top losers included Kuala Lumpur Kepong Bhd, Sime Darby Bhd, UMW Holdings Bhd, Gas Malaysia Bhd, Bursa Malaysia Bhd, Hong Leong Bank Bhd, PPB Group Bhd, Sarawak Oil Palms Bhd, Malayan Banking Bhd, CIMB Group Holdings Bhd and IOI Corporation Bhd.

Asian shares stepped back on Friday and major currencies mostly stuck to late U.S. levels as investors caught their breath, after Switzerland's unexpected move to abandon its currency cap jolted markets already roiled by plunging commodities prices, according to Reuters.

The euro suffered its biggest one-day drop against the Swiss franc in history and skidded to an 11-year low against the U.S. dollar after the Swiss National Bank (SNB) suddenly ditched its commitment to keep its franc above 1.20 per euro, it said.

Hong Leong IB Research in a market preview Friday said that technically, it was mildly positive now for the FBM KLCI to retest 1750-1775 zones after closing above the downtrend line (near 1737) last three sessions.

“Nevertheless, current rebound may be capped near 1775 given the challenging Malaysia economic and corporate earnings prospects in 2015 following sliding oil prices and ringgit,” it said.