KLCI pares gains, tech stocks fall on Apple warning

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KUALA LUMPUR (Jan 3): The FBM KLCI pared some of its gains at the midday break today as local investors remained wary of external developments.

Meanwhile, technology-related stocks were among the top losers following Apple Inc's revenue warning.

At 12.30pm, the FBM KLCI was up 9.63 points to 1,677.74. The index had earlier risen to its intra-morning high of 1,680.78.

Gainers led losers by 325 to 270, while 307 counters traded unchanged. Volume was 1.05 billion shares valued at RM553.05 million.

The top gainers included Nestle (M) Bhd, Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Tenaga Nasional Bhd, Apex Healthcare Bhd, Sime Darby Plantation Bhd, Bursa Malaysia Bhd, MISC Bhd, Petronas Gas Bhd and Yinson Holdings Bhd.

The actives included Inari Amertron Bhd, Sapura Energy Bhd, Sanichi Technology Bhd, Hubline Bhd, Berjaya Corp Bhd, Permaju Industries Bhd and Tatt Giap Group Bhd.

The losers included Dutch Lady Milk Industries Bhd, British American Tobacco (M) Bhd, ViTrox Corp Bhd, MSM Malaysia Holdings Bhd, Inari, Tasek Corp Bhd, Globetronics Technology Bhd and KESM Industries Bhd.

US stock futures fell on Thursday after a rare revenue warning from Apple Inc added to worries about slowing global growth, but a move by China's central bank to help struggling smaller firms lifted shares there, cushioning losses for Asian markets, according to Reuters.

The Cupertino, California-based tech giant blamed fewer iPhone upgrades and slowing sales in China in warning about revenues in its most recent quarter, its first such warning since 2007. Its shares tumbled 8% in after-hours trade, it said.

Affin Hwang Capital Research said the FBM KLCI Index fell 22.47 points or 1.33% in yesterday's session despite gains in the US market.

The research house said prices failed to breach above the 50-day exponential moving average (resistance), whereby sellers came into the picture, pushing the index down quite significantly.

"Nonetheless, remain view that our index will continue edging higher with an immediate upside target around 1,730-1,750.

"Any dip in the market would present a good opportunity for investors to tactically deploy capital back into equities.

"Anticipate FBM KLCI Index to test the short-term resistance in the near future," it said.