KLCI pulls back on profit-taking as regional markets mixed on overnight Wall Street weakness

KLCI pulls back on profit-taking as regional markets mixed on overnight Wall Street weakness
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KUALA LUMPUR (May 20): The FBM KLCI pulled back at mid-morning as profit-taking activities set in, against the backdrop of mixed regional markets, following the lower overnight close at Wall Street.

At 10am, the FBM KLCI fell 2.68 points to 1,421.29. The index had risen to a high of 1,430.19 earlier this morning.

Losers led gainers by 398 to 257, while 311 counters traded unchanged. Trading volume was 1.83 billion shares valued at RM799.87 million.

The decliners included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Dutch Lady Milk Industries Bhd, PPB Group Bhd, Hong Leong Financial Group Bhd, Heineken Malaysia Bhd, Petronas Dagangan Bhd, Panasonic Manufacturing Malaysia Bhd, Petron Malaysia Refining & Marketing Bhd and Kuala Lumpur Kepong Bhd. 

The actives included Eduspec Holdings Bhd, Rimbunan Sawit Bhd, TDM Bhd, KNM Group Bhd, Bumi Armada Bhd, Icon Offshore Bhd, Hibiscus Petroleum Bhd, Sapura Energy Bhd and Hubline Bhd.

The gainers included United Plantations Bhd, Hartalega Holdings Bhd, Pharmaniaga Bhd, Greatech Technology Bhd, Sarawak Oil Palms Bhd, Comfort Gloves Bhd, Allianz Malaysia Bhd, Supermax Corp Bhd, Ta Ann Holdings Bhd and United Malacca Bhd.

Bloomberg said stocks in Asia were mixed early Wednesday as reports on Moderna Inc’s coronavirus vaccine added to concern that a successful way to beat the pandemic remains a long way off.

Treasuries held an overnight advance, it said.

Hong Leong IB Research said technically, KLCI could continue its run-up to break the 1,429 (April 20 high) resistance after a positive triangle breakout yesterday, supported by favourable daily and weekly technicals.

“Nevertheless, profit-taking consolidation may cap further upside as the market is digesting recent historic trading volumes, the long Hari Raya holidays (Bursa will be closed on May 25-26), ongoing results season, and a 1.6% pullback on Dow overnight,” it said.