KLCI remains in negative zone, tracks regional markets

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KUALA LUMPUR (Jan 4): The FBM KLCI remained in negative territory at the midday break today, tracking regional equity markets.

At 12.30pm, the FBM KLCI dipped 2.14 points to 1,673.69. The index had at mid-morning risen to a high of 1,676.55.

Losers led gainers by 362 to 302, while 326 counters traded unchanged. Volume was 1.14 billion shares valued at RM519.23 million.

The top losers included Nestle (M) Bhd, BLD Plantation Bhd, Fraser & Neave Holdings Bhd, British American Tobacco (M) Bhd, Genting Plantations Bhd, Ajinomoto (M) Bhd, Carlsberg Brewery Malaysia Bhd, Pentamaster Corp Bhd, Malaysia Airports Holdings Bhd and Dufu Technology Corp Bhd.

The actives included KUB Malaysia Bhd, PUC Bhd, Inari Amertron Bhd, Permaju Industries Bhd, Borneo Oil Bhd, Barakah Offshore Bhd, Sanichi Technology Bhd, Iskandar Waterfront City Bhd and KNM Group Bhd.

The gainers included Dutch Lady Milk Industries Bhd, Sarawak Oil Palms Bhd, Amway (M) Holdings Bhd, SAM Engineering & Equipment (M) Bhd, Damansara Realty Bhd, IHH Healthcare Bhd, Scientex Bhd, Petronas Dagangan Bhd and Kuala Lumpur Kepong Bhd.

Financial markets were on edge on Friday as weak US economic data added to fears of a global slowdown and pushed investors to bet the Federal Reserve could reverse policy and start cutting interest rates before the end of this year, according to Reuters.

But nerves were soothed somewhat by news that the United States and China would hold vice-ministerial level talks next week on their trade dispute, with the Chinese blue-chip index turning 0.4% higher, the newswire said.

Affin Hwang Capital Research said the FBM KLCI Index rebounded on Thursday, gaining 7.72 points or 0.46% to close at 1,675.83.

The research house said technically, looking at the daily chart, the bullish divergence spotted on the moving average convergence divergence and simple moving average (MACD & RSI) are starting to materialise as prices are showing signs of pushing to the upside.

"MACD & RSI are steadily inching higher which is also another positive sign, indicating growing upwards momentum.

"Nonetheless, anticipate markets to open soft today, remaining flat or slightly lower throughout the session following losses seen in the global arena.

"Anticipate FBM KLCI Index to test the short-term resistance in the near future," it said.