Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Jan 16): The FBM KLCI paused this morning, tracking the stall at regional markets.

At 9.10am, the FBM KLCI fell 3.55 points to 1,675.87.

The losers included Fraser & Neave Holdings Bhd, Public Bank Bhd, QL Resources Bhd, Tenaga Nasional Bhd, Hap Seng Consolidated Bhd, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Alliance Bank Malaysia Bhd, Petronas Dagangan Bhd and Genting Plantations Bhd.

The rally that drove Asian equities to a six-week high showed signs of stalling Wednesday, while the pound steadied after U.K. politicians voted down a Brexit deal, according to Reuters.

Shares in Australia and South Korea were little changed and Japanese equities retreated from their almost 9 percent advance since Christmas. Earlier, the S&P 500 Index climbed the most in a week as risk assets across the globe were spurred in part by signs of more stimulus to come in China. The 10-year Treasury yield held at 2.71 percent, while the dollar was steady against major peers. The yield spread between five-year and 30-year Treasuries steepened Tuesday, touching a level unseen since February amid further comments from Federal Reserve officials stressing patience when it comes to policy changes, it said.

Kenanga IB Research said stocks in Asia rebounded ahead of vote on Brexit deal while also boosted by the statement from senior economic officials that Beijing will cut taxes and keep monetary policy flexible to weather China’s slowdown.

It said at the closing bell, the FBMKLCI gained 3.26 points (+0.19%) to close at 1,679.42 as broader market sentiment turned positive with 413 winners outnumbered 374 losers, while 357 counters unchanged.

The research house said chart-wise, the local index appears fixated within its 50 and 20-day SMAs while trading volume continued tapering off.

“All in, we reaffirm our view that the technical outlook of the index is still leaning towards downside bias as key SMAs remains in “Death Cross” state.

“Continuous negative momentum will see it trend closer to its support level at 1,615 (S1) with a break below, will then see the index capitulate towards 1,600 (S2).

“Conversely, resistances can be identified at 1,700 (R1) and 1,750 (R2),” it said.

      Print
      Text Size
      Share