KLCI extends loss on mild profit taking

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KUALA LUMPUR (April 10): The FBM KLCI retreated in early trade today, weighed by losses including at Petronas- and Genting-linked stocks.

At 9am, the FBM KLCI fell 2.54 points to 1,846.85.

The top losers included Petronas Dagangan Bhd, Petronas Gas Bhd, Genting Bhd, Hong Leong Financial Group Bhd. Malayan Banking Bhd, Genting Plantations Bhd, Hong Leong Bank Bhd and Genting Malaysia Bhd.

Asian shares advanced close to recent highs on Friday and the dollar stood tall after news that Greece had made a 450 million euro loan payment to the International Monetary Fund trimmed safety bids for U.S. government debt, according to Reuters.

The payment to the IMF secured extra emergency lending for Greek banks and helped improve global risk sentiment, though it remained unclear whether Athens could satisfy creditors who remain sceptical on the country's economic reforms, it said.

Hong Leong IB Research in a market preview today said that the FBM KLCI may extend its profit taking to neutralise its overbought positions.

“However, any pullback will be well-absorbed amid positive expectations from Invest Malaysia conference (23-24 Apr), the upcoming 11th Malaysia Plan (to be tabled in Parliament on 21 May) and the prospects of foreign inflows.

“Key supports are 1810-1820 while resistance are near 1858-1878 levels,” it said.