KLCI poised to end week on sour note

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KUALA LUMPUR (Sept 26): The FBM KLCI looked set to end the week on a sour note in line with its regional peers following the sharp overnight drop at Wall Street as well on jittery investor sentiment with mounting geopolitical tensions in the Middle East.

At 12.30pm, the FBM KLCI fell 6.21 points to 1,836.90.

Market breadth was negative with losers leading gainers by 475 to 211, while 325 counters traded unchanged. Volume was 1.43 billion shares valued at RM872.68 million.

The top losers included BAT, Press Metals, HLFG, Tahps, Kawan Food, Hong Leong Industries, KLK, Timecom and Lafarge Malaysia.

The actives included TMC Life, Asia Bio, Berjaya Corp. Sumatec, Takaso and Sanichi.

The gainers included Nestle, Fima Corp, Tecnic, LPI Capital, Oriental, ULI Corp, Kluang, Ajiya, BLD Plantation and Scientex.

Regionally, Asian shares were poised to end the week on a sour note on Friday after a steep drop on Wall Street, while the dollar steadied close to multi-year highs touched in the previous session, according to Reuters,

U.S. stocks ended sharply lower, as Apple Inc broke under key technical levels after the tech giant withdrew an update to its new operating system. That pushed the S&P 500 to its biggest one-day decline since July, it said.

Hong Leong IB Research said given the bearish performance from Dow overnight and the FBM KLCI’s failure to stage a strong rebound to reclaim the 200-day simple moving average (SMA) support-turned-resistance at 1851, near term outlook remains negative.

“A close below 1,832 (23 Sep intraday low) in the immediate term will open up more selling pressures to retest 1,818 (61.8% FR) support.

“Key resistances remain at 1851, 1861 (30-d SMA) and 1867 (23.6% FR),” it said.