KLCI pauses for a breather in line with region

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KUALA LUMPUR (June 21): The FBM KLCI got off to a muted start and retreated in line with flat regional markets, weighed by select index-linked stocks.

At 9,05am, the FBM KLCI dipped 2.91 points to 1,672.52.

The early decliners included Tenaga Nasional Bhd, Kuala Lumpur Kepong Bhd, MISC Bhd, PPB Group Bhd, QL Resources Bhd, IOI Corp Bhd, Jaycorp Bhd, SP Setia Bhd and Maxis Bhd.

Stocks in Asia looked set for a muted start Friday even as their U.S. counterparts climbed to a record high. Treasury yields climbed back above 2%, according to Bloomberg.

Futures were little changed in Japan, Hong Kong and Australia, with the MSCI Asia Pacific Index already up more than 3% on the week. Oil soared as President Donald Trump hinted at possible retaliation for Iran shooting down a U.S. drone. Energy stocks led U.S. share gains. The dollar slumped, while Treasuries gave up some gains seen in the wake of the Federal Reserve’s signal for lower interest rates, it said.

Kenanga IB Research said Asia’s market sentiments continue to be positive after the Federal Reserve kept interest rate unchanged.

Likewise, it said the FBM KLCI continued its rally for a third consecutive day to close at 1,675.43 (+8.89 points, + 0.53%).

“We are bullish on the FBMKLCI as it has broken above its 100 day SMA.

“From here, immediate resistance is at 1,690 (R1). A break above would then see it test next psychological resistance level at 1,730 (R2). Conversely, downside supports are identified at 1,650 (S1) and 1,600 (S2),” it said.