KUALA LUMPUR (Nov 12): The FBM KLCI extended its losses early this morning, tracking the fall at regional markets.
At 9.05am, the FBM KLCI fell 3.43 points to 1,704.66.
The decliners included LPI Capital Bhd, Padini Holdings Bhd, Westports Holdings Bhd, Carlsberg Brewery Malaysia Bhd, Public Bank Bhd, QL Resources Bhd, Tenaga Nasional Bhd, KESM Industries Bhd, Bursa Malaysia Bhd and Ta Ann Holdings Bhd.
Asian stocks kicked off the week with declines following a weak U.S. session on Friday. The pound slipped as U.K. Prime Minister Theresa May fought to keep her Brexit divorce plan alive, according to Bloomberg.
Shares fell in Japan, Australia and South Korea. Futures trading from late Friday pointed to declines in Hong Kong. That’s after large-cap tech stocks dragged the Nasdaq 100 Index to a loss of more than 1.5 percent. Oil prices snapped a 10-day sell-off after the bear market for crude spurred OPEC and its allies to start laying the groundwork to cut supply in 2019. Yields on 10-year Treasuries, which don’t trade Monday thanks to a U.S. holiday, ended just below 3.2 percent on Friday, it said.
Kenanga IB Research said Asian stock markets ended last week mostly lower despite US maintaining its interest rate as investors remain cautious of another possible rate hike by this year end.
It said that similarly, the FBM KLCI fell 13.33 points or 0.77% to close at 1,708.09, recording a week-on-week loss of 0.3% despite gains made in the early part of the week.
“Despite the losses, the short-term uptrend is still intact while the RSI and stochastic indicators are still within a healthy position.
“Should market sentiment improve, key levels of resistances to look for are at 1,740 (R1) and 1,760 (R2).
“Immediate support levels to watch for are 1,680 (S1) and 1,650 (S2) where a break below it will be deemed highly negative,” it said.