KLCI falls 0.38% in tandem with regional retreat

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KUALA LUMPUR (Oct 5): The FBM KLCI fell 0.38% at mid-morning today, tracking fragile regional markets.

At 10am, the FBM KLCI lost 6.75 points to 1,783.36.

Losers led gainers by 388 to 129, while 280 counters traded unchanged. Volume was 523.39 million shares valued at RM312.86 million.

The losers included Nestle (M) Bhd, Genting Plantations Bhd, MSM Malaysia Holdings Bhd, Fraser & Neave Holdings Bhd, Petronas Gas Bhd, British American Tobacco (M) Bhd, Top Glove Corp Bhd, KESM Industries Bhd and Pavilion REIT.

The actives included Malaysian Resources Corp Bhd, My EG Services Bhd, Sapura Energy Bhd, Sanbumi Holdings Bhd and Gabungan AQRS Bhd.

The gainers included Aeon Credit Service (M) Bhd, United Plantations Bhd, Hong Leong Industries Bhd, Lotte Chemical Titan Holding Bhd, Adventa Bhd, Pos Malaysia Bhd, Hong Leong Bank Bhd and Pinehill Pacific Bhd.

Asian stocks rounded out a tough week with further declines after US equities fell to a three-week low amid the surge in bond yields. Treasuries steadied and the US dollar was little changed as traders turned their focus to US employment data Friday, according to Bloomberg.

Shares in Japan and Australia declined and futures indicated losses when trading begins in Hong Kong. The Nasdaq 100 Index notched its worst day since June following Bloomberg's report that China infiltrated American companies with hardware hacks. The 10-year Treasury yield stabilised at 3.19% after hitting the highest since 2011 this week. Crude oil climbed back towards US$75 a barrel, it said.

Kenanga IB Research said after the strong economic data from the US that caused treasury yield to rise, Asian markets ended mostly lower with funds moving out from the region.

"Similarly, our local benchmark index again declined by another 6.19 points or 0.34% to close at 1,790.11, led by losses from Axiata Group Bhd (-2.60%).

"Chart-wise we note that the index had just broke below the 50-day SMA yesterday which we believe there might be more short-term downward movement.

"Nonetheless, we expect the index to hold at support levels of 1,780 (S1) and 1,765 (S2), close to its 100-day SMA, which has proven to act as a fairly resilient support," it said.