KUALA LUMPUR (Nov 23): The FBM KLCI retreated in early trade this morning against the backdrop of mixed regional markets.
At 9.05am, the FBM KLCI shed 1.087 points to 1,694.55.
The decliners included KESM Industries Bhd, Fraser & Neave Holdings Bhd, MISC Bhd, Lii Hen Industries Bhd, Pentamaster Corp Bhd, Scicom (MSC) Bhd, Revenue Group Bhd and Poh Huat Resources Bhd.
Asian stocks were mixed on Friday morning, rounding out a third week of losses. The pound kept its gains following a breakthrough over the Brexit deal between the UK and EU, according to Bloomberg.
South Korean shares edged higher, while Australian equities were flat and futures pointed to a lower start in Hong Kong. US equity futures indicated declines when trading begins in New York on Friday. Volumes remain light as the week ends with markets in Japan and India shut for holidays and Treasuries won’t start trading until the London open. European equities gave up a chunk of Wednesday’s advance as almost every sector fell, though trading was thin and the gauge did finish above its lows on the day, it said.
Hong Leong IB Research in a traders’ brief said without any significant development on the trade development, the volatility could remain over the near term and investors will be focusing on the upcoming G20 summit to get more clues on the trade discussions, while the outcome on the FOMC and the OPEC meeting will be monitored closely as it will be affecting markets’ trading tone moving forward.
“Meanwhile, sales figures during the US Black Friday will be closely watched, as it is known as the start to the US holiday shopping season, to gauge the resilience of the US economy.
“We expect the KLCI to engage in range bound consolidation in the near term in wake of external headwinds and internal clouds surrounding the ongoing Bursa Malaysia 3Q18 results season and slowing Malaysian economy, compounded by weak crude oil and FCPO prices.
“Major supports are at 1,657-1,670, whilst formidable resistances are near 1,709 (30D SMA) to 1,726 (1M high),” it said.