KLCI pares gains, struggles to breach 1,600 level

-A +A

KUALA LUMPUR (Sept 11): The FBM KLCI pared some of its gains at mid-morning today as it struggled to breach the important 1,600-point level, despite tracking the regional uptrend.

At 10am, the FBM KLCI gained 3.12 points to 1,598.97. The index had earlier risen to a high of 1,600.16.

Gainers led losers by 234 to 189, while 319 counters traded unchanged. Volume was 592.09 million shares valued at RM263.39 million.

The gainers included Magni-Tech Industries Bhd, BIMB Holdings Bhd, Hong Leong Financial Group Bhd, Petronas Chemicals Group Bhd, Pintaras Jaya Bhd, Westports Holdings Bhd, GHL Systems Bhd, Hong Leong Bank Bhd and Axiata Group Bhd.

The actives included Metronic Global Bhd, Bumi Armada Bhd, MNC Wireless Bhd, Eduspec Holdings Bhd, NetX Holdings Bhd and Dayang Enterprise Holdings Bhd.

The decliners included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Dutch Lady Milk Industries Bhd, Kuala Lumpur Kepong Bhd, Malaysian Pacific Industries Bhd, Chin Teck Plantations Bhd, Time Dotcom Bhd, Malaysia Airports Holdings Bhd and Hong Leong Industries Bhd.

Asian stock markets held firm and bond yields rose on Wednesday as hopes of diminishing US-China tensions and reduced risk of no-deal Brexit prompted investors to take profit in risk-off trade ahead of key central bank policy meetings, according to Reuters.

In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1% while Japan's Nikkei rose 0.32%, it said.

Kenanga IB Research said Asian stocks ended mixed yesterday as investors turned cautious, as China's exports figure fell in August amid the ongoing trade spat.

It said back home, the FBM KLCI lost 8.62 points or 0.54% to close at 1,595.85 due to the termination of Axiata-Telenor merger.

"Chart-wise, the underlying trend of the index remains bearish as the index remains below 50- and 100-day SMAs (simple moving averages), due to lack of market catalyst.

"Should the selling pressure persist, key support levels can be seen at 1,570 (S1) and 1,550 (S2).

"Conversely, overhead resistance levels can be found at 1,630 (R1) and 1,650 (R2)," it said.