KLCI pares loss but technical downtrend remains intact

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KUALA LUMPUR (Aug 29): The FBM KLCI pared some of its loss at the midday break, against the backdrop of struggling regional markets, amid technical indicators for the local index showing a resumption of prevailing downtrend.

At 12.30pm, the FBM KLCI dipped 1.99 points to 1,587.83. The index had earlier slipped to a low of 1,584.83.

Losers led gainers 329 to 165, while 520 counters traded unchanged. Volume was 1.07 billion shares valued at RM617.14 million.

The decliners included Nestle (M) Bhd, British American Tobacco (M) Bhd, Telekom Malaysia Bhd (TM), Syarikat Takaful Malaysia Keluarga Bhd, Kuala Lumpur Kepong Bhd, IQ Group Holdings Bhd, Dutch Lady Milk Industries Bhd, Aeon Credit Service (M) Bhd and Petronas Chemicals Group Bhd.

The actives included Green Packet Bhd, Vsolar Group Bhd, MNC Wireless Bhd, Sapura Energy Bhd, KNM Group Bhd, TM and Opcom Holdings Bhd.

The gainers included Petronas Gas Bhd, Batu Kawan Bhd, Lafarge Malaysia Bhd, Petronas Dagangan Bhd, Ayer Holdings Bhd, Latitude Tree Holdings Bhd, Hong Leong Bank Bhd and MBM Resources Bhd.

Global bond yields flirted with record lows while stocks struggled to recover on Thursday, as global recession worries from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.38%, Singapore shares hit eight-month lows, while Japan's Nikkei shed 0.44%, it said.

Affin Hwang Capital Research said the FBM KLCI Index dropped slightly in yesterday's session, shedding 1.02 points or 0.06%, closing at 1,589.82.

It said the recent technical rebound seen in the index is perceived to be completed.

"Moving forward, anticipate upside potential to be limited and market as a whole to resume the prevailing downward trend.

"Short-term technical rebound completed. Anticipate the index to resume its prevailing downtrend," it said.