KLCI retreats as index heavyweights TNB and Maybank drag, regional markets mixed

KLCI retreats as index heavyweights TNB and Maybank drag, regional markets mixed
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KUALA LUMPUR (July 20): The FBM KLCI retreated in the mid-morning amid some choppy trade as index heavyweights Tenaga Nasional Bhd (TNB) and Malayan Banking Bhd (Maybank) weighed against a backdrop of mixed regional markets.

At 10am, the FBM KLCI had dipped 1.45 points to 1,594.88. The index earlier rose to a high of 1,609.02.

Losers edged gainers by 402 to 396, while 346 counters traded unchanged. Trading volume was 4.02 billion shares valued at RM1.53 billion.

The top losers included Nestle (Malaysia) Bhd, Dutch Lady Milk Industries Bhd, Carlsberg Brewery Malaysia Bhd, TNB, British American Tobacco (Malaysia) Bhd, Hong Leong Financial Group Bhd and Maybank.

The actively trades stocks included Lambo Group Bhd, Eduspec Holdings Bhd, Pegasus Heights Bhd, NetX Holdings Bhd, Nexgram Holdings Bhd, XOX Bhd, DGB Asia Bhd and Daya Materials Bhd.

The top gainers included Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd and Panasonic Manufacturing Malaysia Bhd.

Reuters said Asian shares began warily today as investors eyed efforts to stitch together more fiscal stimulus in the eurozone and the US to help economies ride out the effects of a record jump in Covid-19 cases globally.

MSCI's broadest index of Asia-Pacific shares outside Japan was flat at 541.49, with Australian shares down 0.3% and South Korea's Kospi just a shade higher, it said.  

Hong Leong Investment Bank (HLIB) Research said tracking overnight Dow and oil price retracements, coupled with heightened US-China geopolitical tensions and expectations of persistent volatility in glove stocks amid heavy deliveries of retail transactions following the recent surge, the KLCI is likely to witness a choppy pattern this week.

“Key supports are situated at 1,563-1,544, while resistances are pegged at the 1,617-1,629 levels,” it said.