KLCI pares gains as regional markets struggle

KLCI pares gains as regional markets struggle

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KUALA LUMPUR (Aug 19): The FBM KLCI pared some of its gains at mid-morning today in line with the regional markets that struggled on the back of the weaker start at China’s markets.

At 10am, the FBM KLCI was up 7.39 points to 1,586.99. The index had earlier risen to a high of 1,594.68.

The top gainers included SAM Engineering & Equipment Bhd, Malaysian Pacific Industries Bhd, Tasek Corporation Bhd, P.I.E. Industrial Bhd, Pestech International Bhd, PPB Group Bhd, Genting Bhd and Aeon Credit Services (M) Bhd.

The actives included The Media Shoppe Bhd, AirAsia Bhd, Frontken Corporation Bhd, Nexgram Holdings Bhd, IFCA MSC Bhd, Bumi Armada Bhd and Sumatec Resources Bhd.

The top decliners included Rapid Synergy Bhd, United Plantations Bhd, Sarawak Oil Palms Bhd, Hong Leong Financial Group Bhd, British American Tobacco (M) Bhd, Petronas Chemicals Group Bhd and Boustead Holdings Bhd.

Asian shares on Wednesday struggled to move away from two-year lows the previous day after big falls in Chinese shares raised fresh fear about the stability of China's economy, according to Reuters.

Japan's Nikkei fell 0.2%. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4%, recovering from a two-year low hit on Tuesday, though it was still down almost 6% this month, it said.

Hong Leong IB Research said that for a resumption of rally, the FBM KLCI must swiftly reclaim key resistances at 1,605–1,632 levels as a failure to do so will reignite another round of downleg towards 1,526 zones.

“Moreover, last week’s decisive breakdown of a Head-and-Shoulder (H&S) neckline support could be damaging as accelerating selling spree may push KLCI to break below 1,526 to as low as 1,474 (worst case scenario for H&S downside objective) before commencing a more solid recovery,” it said.