KLCI falls in early trade as blue chips weigh

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KUALA LUMPUR (Sept 17): The FBM KLCI fell in early trade on Wednesday, weighed by losses at blue chips including Sime Darby, CIMB and RHB Capital.

At 9am, the FBM KLCI fell 5.97 points to 1,841.33.

The top losers included Petronas Gas, KLK, Carlsberg, United Plantations, UMW,Sime Darby, CIMB, Takaful, Gamuda and RHB Capital.

Regionally, Asian shares crept cautiously higher on Wednesday after Wall Street rebounded on speculation the Federal Reserve would maintain a pledge on low rates when a two-day policy meeting ends later in the session, according to Reuters.

The Dow hit a fresh record while the U.S. dollar took a knock after the Wall Street Journal's Fed watcher Jon Hilsenrath said the central bank would keep the words "considerable time" in its policy statement, though it might qualify them, it said.

BIMB Securities Research in a market preview Wednesday said the FBM KLCI fell 8.3 points to 1,847.3 on Monday with selling led by telco and plantation counters while trading participation shows net selling by foreign institutions.

“We expect the local market to remain volatile with the slight downside bias as our market is still trading at a premium over other regional indices.

“Expect to see immediate support at 1,845/40 while resistance at 1,850/55,” it said.