KLCI reverses gains, dips in line with region

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KUALA LUMPUR (Dec 2): The FBM KLCI reversed its gains and dipped at mid-morning, in line with the stuttering regional markets.

At 10am, the FBM KLCI dropped 3.92 points to 1,678.45.

The top decliners included Daibochi Plastic and Packaging Industry Bhd, Maxis Bhd, Kuala Lumpur Kepong Bhd, IJM Plantations Bhd, Khind Bhd, Hong Leong Financial Group Bhd, Ajinomoto (Malaysia) Bhd and Hong Leong Bank Bhd.

The actives included XOX Bhd, China Stationery Ltd, Instacom Group Bhd, 1 Utopia Bhd, Nexgram Holdings Bhd, Iris Corporation Bhd, Genetec Technology Bhd and EA Holdings Bhd.

The gainers included Huat Lai Resources Bhd, Carlsberg Brewery (M) Holdings Bhd, Ajiya Bhd, SAM Engineering & Equipment (M) Bhd, RHB Capital Bhd and Genting Plantations Bhd.

Asian stocks stuttered in early trade on Wednesday after downbeat US manufacturing data raised concerns about the health of the world's biggest economy, while the dollar retreated from 8½-month highs, according to Reuters.

Japan's Nikkei dipped 0.2%, Australian stocks lost 0.5% and South Korea's Kospi shed 0.3%. MSCI's broadest index of Asia-Pacific shares outside Japan stood flat, it said.

JF Apex Securities Research said US stocks rallied into the close to end up nearly 1% or higher amid weak manufacturing data. The S&P 500 breached the psychological key level of 2,100 with the rising of the healthcare sector.

Meanwhile, it said European equities came under pressure on Tuesday, closing mixed despite the positive euro zone unemployment data.

"On the local market, the FBM KLCI closed 10.21 points higher at 1,682.37 points on late buying.

"We envisage the local benchmark index to remain positive and tracking the overnight gains in the US.

"The KLCI is expected to consolidate below the psychological level of 1,700 points," it said.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)