Friday 29 Mar 2024
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KUALA LUMPUR (Oct 27): The FBM KLCI extended losses for the third consecutive day amid slower regional markets after weaker earnings by Apple Inc dragged US markets to close lower overnight.

At market close, the benchmark index fell 4.89 points or 0.29% to 1,669.03.

The index is expected to maintain its sideways trend as external uncertainties continue to affect sentiment on the KLCI.

Hong Leong Investment Bank said the KLCI may continue to be range-bound in the near term — between the immediate resistance of 1,675 and key supports of 1,666, 1,661 and 1,645 points — ahead of the US Federal Open Market Committee meeting and the US presidential election in November.

"Once these uncertainties are removed (assuming no negative surprises as markets have priced in a Hillary Clinton victory), KLCI will gradually inch higher in anticipation of a better Malaysia 3Q16 GDP and lesser disappointment of the upcoming November 3Q16 results season, which could eventually [cause] KLCI 2017 earnings to grow 9.5% after posting a three-year consecutive decline," said the research house in a note.

Bursa Malaysia saw some 1.49 billion shares worth RM1.6 billion traded. Market breadth remained negative with 396 decliners against 339 gainers, while 406 counters were unchanged.

Fraser & Neave Holdings Bhd led the decliners, while Hong Leong Industries Bhd headed the gainers. The most traded stock was Sumatec Resources Bhd.

Across the region, Japan's Nikkei 225 fell 0.32%, Hong Kong's Hang Seng declined 0.83%, while South Korea's Kospi gained 0.51%.

Reuters reported that Asian shares extended losses on Thursday after disappointing earnings from technology giant Apple dragged on Wall Street, while the dollar firmed but remained shy of this week's nearly nine-month highs.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.9% in afternoon trade.

 

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