KUALA LUMPUR (June 15): The FBM KLCI extended its losses and fell 0.89% at mid-morning as index-linked counters led by Petronas stocks retreated in line with regional markets.

At 10am, the FBM KLCI lost 13.69 points to 1,532.33.

Market breadth was negative with 520 losers and 219 gainers, while 324 counters traded unchanged. Trading volume was 2.37 billion shares valued at RM928.41 million.

The top losers included Hong Leong Bank Bhd, Petronas Chemicals Group Bhd, Supermax Corp Bhd, Petronas Gas Bhd, Kossan Rubber Industries Bhd, British American Tobacco (M) Bhd, Syarikat Takaful Malaysia Keluarga Bhd, G3 Global Bhd and Scientex Bhd.

The actives included Pegasus Heights Bhd, Minetech Resources Bhd, AT Systematization Bhd, ConnectCounty Holdings Bhd and iStone Group Bhd.

The gainers included Perusahaan Sadur Timah Malaysia Bhd, Hartalega Holdings Bhd, Favelle Favco Bhd, Asia File Corp Bhd, KESM Industries Bhd, Batu Kawan Bhd and Ajinomoto (M) Bhd.

Bloomberg said US futures retreated along with Asian shares and the US dollar climbed against major peers as investors gauged the danger of a second wave of coronavirus infections.

S&P 500 futures were down about 1.5% in early trading, and Japanese and Korean stocks dropped at the open. More than 20 US states are seeing a pick-up in cases, Tokyo reported a jump over the weekend and a fresh outbreak in Beijing prompted officials to close a market there. Second-wave concerns had pummeled shares on Thursday before a modest rebound Friday. Crude oil prices slid, and Treasuries climbed, it said.

Hong Leong IB Research said after rallying 28% from Covid-19 bottom of 1,208, KLCI should extend profit-taking pullback due to overbought positions and bleak economic outlook warned by the US Federal Reserve and IMF last week.

It said key weekly support is situated near 1,509 (last Friday’s low).

“Failure to hold at 1,509 would trigger more damage, with the index likely to slip below 1,500 and 1,470 (uptrend line support from 1,208) zones.

“Weekly resistances are near 1,562, 1,590 and 1,600 levels.

“In wake of ongoing uncertainty, we advocate investors to stay prudent and accumulate companies backed by solid earnings and/or balance sheet,” it said.