KLCI retreats but stays above 1,800-point level

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KUALA LUMPUR (May 18): The FBM KLCI retreated at mid-morning but stayed above the crucial 1,800-point level.

At 10am, the FBM KLCI shed 0.07 points to 1,811.85, weighed by losses select blue chips.

The top losers included British American Tobacco (M) Bhd, Kossan Rubber Industries Bhd, Oriental Food Industries Bhd, Carlsberg Brewery (M) Holdings Bhd, Syarikat Takaful Malaysia Bhd, JobStreet Corporation Bhd, MISC Bd and AMM Holdings Bhd.

The activey traded stocks included Kanger International Bhd, Nexgram Holdings Bhd, Malakoff Corporation Bhd, Ho Wah Genting Bhd, Globaltec Technology Bhd, AirAsia X Bhd and Nocva MSC Bhd.

The top gainers included United Plantations Bhd, Amway (M) Holdings Bhd, Petronas Dagangan Bhd, Danainfra Nasional Bhd, PPB Group Bhd, Pestech International Bhd and Bursa Malaysia Bhd.

Asian shares struggled on Monday after soft data raised more questions about the health of the U.S. economy, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed while Japan's Nikkei share average edged up just 0.1 percent, despite stronger-than-expected orders, it said.

U.S. industrial production unexpectedly fell for a fifth straight month in April while consumer confidence dropped to a seven-month low in early May, data showed on Friday, pushing down the dollar and U.S. bond yields, said Reuters.

Hong Leong IB Research said that ahead of the tabling of 11th Malaysian Plan in Parliament on 21 May, the FBM KLCI may resume its technical rebound this week, as technical oscillators are bottoming up from grossly oversold positions, following a 3-day rebound of 13.3 points.

“A decisive breakout above 1,815 (200-d SMA) will spur index higher to retest 1,821 (23.6% FR) and 1,831 (4 Feb high) levels.

“Weekly supports are 1793-1800 zones,” it said.