KLCI pares down loss, tracks advance at key Asian markets

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KUALA LUMPUR (July 18): The FBM KLCI pared down its earlier losses substantially at mid-morning today, tracking the advance at key Asian markets.  

At 10am, the FBM KLCI was down 0.10 points to 1,737.18. The index had earlier fallen to a low of 1,730.38.

Gainers led losers by 253 to 217, while 296 counters traded unchanged. Volume was 599.89 million shares valued at RM321.48 million.

The losers included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, Public Bank Bhd, Ajinomoto (M) Bhd, PMB Technology Bhd, Hong Leong Bank Bhd, See Hup Consolidated Bhd and Boustead Heavy Industries Corp Bhd.

The actives included Revenue Group Bhd, Priceworth International Bhd, Sapura Energy Bhd, Foundpac Group Bhd, Ucrest Bhd, Tiger Synergy Bhd, Berjaya Corp Bhd and Kronologi Asia Bhd.

The gainers included Danainfra Nasional Bhd, Carleberg Brewery Malaysia Bhd, Revenue Group, Magni-Tech Industries Bhd, Lingkaran Trans Kota Holdings Bhd, Kossan Rubber Industries Bhd and UMW Holdings Bhd.

Asian shares followed Wall Street higher on Wednesday as a bullish outlook from the head of the U.S. central bank buoyed the dollar, lifted Tokyo shares to a one-month top and sent gold to a one-year trough, according to Reuters.

Japan's Nikkei leapt out of the blocks with a 1 percent gain as a weakening yen promised to fatten exporters' profits, it said.

Hong Leong IB Research in a traders’ brief said in the US, the uptrend move above the 25,000 may sustain as the Fed chairman remained optimistic on the economy outlook as the unemployment rate is trending lower and market participants are expecting another two rate hike in 2018.

“Nevertheless, trading tone in the US will depend on the on-going reporting season and trade development newsflow that may surface over the near term.

“Tracking the positive tone on Wall Street, we may expect the FBM KLCI to trend mildly higher towards the resistance zone of 1,740-1,750.

“Meanwhile, selected sector such as construction and technology could also see further trading activities with cautiously optimistic view on construction mega projects after the LRT3 newsflow last week and the weaker ringgit outlook, respectively,” it said.