KLCI pares loss but struggles to extend gains

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KUALA LUMPUR (Aug 26): The FBM KLCI pared some of its loss at mid-morning as the local index tried to build on its gains from a day earlier.

At 10am, the FBM KLCI was down 1.79 points to 1,562.15. The index had earlier dipped to a low of 1,554.37.

The top losers included British American Tobacco (M) Bhd, Far East Corporation Bhd, Panasonic Malaysia Manufacturing Bhd, Latitude Tree Holdings Bhd, UMW Holdings Bhd, MNRB Holdings Bhd, AMMB Holdings Bhd, RHB Capital Bhd, Signature International  Bhd and Hong Leong Financial Group Bhd.

The actively traded stocks included Frontken Corporation Bhd, AirAsia Bhd, Tiger Synergy Bhd, IFCA MSC Bhd, APFT Bhd, Sumatec Resources Bhd and Talam Transform Bhd.

The top gainers included Tenaga Nasional Bhd, Allianz (M) Bhd, Genting Plantations Bhd, Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Southern Acids Bhd, Guinness Anchor Bhd and Kossan Rubber Industries Bhd.

US stock futures resumed descent in early Asian trade and Asian shares were seen on the defensive on Wednesday as monetary easing by China's central bank had limited success in cheering up nervous investors, according to Reuters.

US S&P 500 mini futures fell 0.7% to 1,858.75, edging closer to Monday's 10-month low of 1,831, it said.

Hong Leong IB Research said that technically, there could be further FBM KLCI upside today amid the formation of bullish engulfing pattern and bottoming up indicators but we expect profit taking to cap further advance  amid bearish handover from Dow and compounded by lingering domestic concerns.

“Furthermore, investors will closely monitor China SHCOMP performance today following the PBOC’s latest maneuver to stimulate its economy and capital markets; as well as further disclosures on the set-up of economic council to spur Malaysia economic growth.

“Key supports are 1,500–1,526 while resistances remain near 1,580–1,600,” it said.