KLCI falls 0.29% as regional markets stay subdued

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KUALA LUMPUR (May 3): The FBM KLCI fell 0.29% at mid-morning today, against the backdrop of subdued regional markets.

At 10am, the FBM KLCI fell 4.73 points to 1,627.51.

Losers led gainers by 325 to 168, while 293 counters traded unchanged. Volume was 530.68 million shares valued at RM316.48 million.

The top losers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, British American Tobacco (M) Bhd, Hong Leong Bank Bhd, Genting Bhd, Malaysian Pacific Industries Bhd, Tenaga Nasional Bhd, Hong Leong Financial Group Bhd and Carlsberg Brewery Malaysia Bhd.

The actives include Impiana Hotels Bhd, Ekovest Bhd, Ewein Bhd, DWL Resources Bhd, Lafarge Malaysia Bhd, Iskandar Waterfront City Bhd and Inix Technologies Holdings Bhd.

The gainers included United Malacca Bhd, Hong Leong Industries Bhd, Crescendo Corp Bhd, SAM Engineering & Equipment (M) Bhd, Can-One Bhd, Yinson Holdings Bhd and Pintaras Jaya Bhd.

Asian share markets were subdued on Friday amid thin holiday trade although the US dollar found support as investors pared expectations for a US rate cut this year while oil prices loitered near one-month lows on oversupply fears, according to Reuters.

Australia's benchmark index was last up 0.2%, New Zealand shares were off 0.5% while South Korea's KOSPI slipped 0.3%. Trading volumes were light across Asia with markets in China and Japan still closed for holidays, it said.

Hong Leong IB Research said the sentiment on Wall Street would remain cautious amid the ongoing US reporting season, coupled with the uncertain US-China trade developments, as there are still some structural issues to be resolved in the upcoming meetings before both nations could strike a trade agreement.

"The Dow's resistance is located around 26,500-26,952.

"Tracking overnight Wall Street's performances, coupled with the weakening crude oil prices, we may expect further spillover of the selling pressure on local bourse on heavyweights and O&G (oil and gas) stocks; the latter may succumb to selling interest due to overnight weakening crude oil prices.

"Also, we believe the volatility could increase throughout the upcoming reporting season on Bursa Malaysia. The FBM KLCI's resistance is located around 1,640-1,658," it said.