KLCI pares loss, down 0.59% as CIMB and Maybank drag

KLCI pares loss, down 0.59% as CIMB and Maybank drag
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KUALA LUMPUR (July 24): The FBM KLCI pared some of its loss in the mid-morning but was still down 0.59% as banking giants CIMB Group Holdings Bhd and Malayan Banking Bhd (Maybank) dragged against a backdrop of weaker regional markets.

At 10am, the KLCI was down 9.55 points to 1,596.87. The index earlier slipped to a low of 1,594.36.

Decliners led gainers by 479 to 295, while 328 counters traded unchanged.Trading volume was 3.42 billion shares valued at RM1.46 billion.

The top losers included Kotra Industries Bhd, Carlsberg Brewery Malaysia Bhd, Duopharma Biotech Bhd, DKSH Holdings (Malaysia) Bhd, Apex Healthcare Bhd, Mesiniaga Bhd, CIMB, Hengyuang Refining Company Bhd and Maybank.

The actively traded stocks included Nexgram Holdings Bhd, Bioalpha Holdings Bhd, Eduspec Holdings Bhd, Vivocom Intl Holdings Bhd, Careplus Group Bhd and HLT Global Bhd.

The top gainers included Dutch Lady Milk Industries Bhd, British American Tobacco (Malaysia) Bhd, Apollo Food Holdings Bhd, Malaysian Pacific Industries Bhd, Greatech Technology Bhd and Ajinomoto (Malaysia) Bhd.

Bloomberg said stocks in Asia followed US equities lower after an unexpected rise in American jobless claims rekindled concern a recovery in the world’s largest economy had stalled.

The US dollar extended this week’s slide, it said.

Hong Leong Investment Bank (HLIB) Research said it was mindful of downside risks to the domestic economy and corporate earnings amid soaring fears of a second wave of Covid-19 infections, intensifying US-China geopolitical tensions and lingering political uncertainties.

“Hence, we expect an extended healthy market consolidation to neutralise overbought technical momentum for a more sustained uptrend going forward, with key resistances pegged at the 1,617 and 1,637 levels, while supports fall in the 1,593 and 1,563 zones.

“Overall, the healthcare sector, such as glove and pharmaceutical stocks, should continue to outperform amid the virus resurgence and potential vaccine progress in the long term,” it said.