KLCI reverses gains as key blue chips retreat, regional markets mixed

KLCI reverses gains as key blue chips retreat, regional markets mixed
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KUALA LUMPUR (June 17): The FBM KLCI reversed its earlier gains and dipped marginally at mid-morning as key index-linked blue chips retreated, against the backdrop of mixed regional markets.

At 10am, the FBM KLCI was down 2.32 points to 1,515.39. The index had earlier risen to a high of 1,528.63.

Losers led gainers by 389 to 294, while 336 counters traded unchanged. Trading volume was 2 billion shares valued at RM823.84 million.

The decliners included Time Dotcom Bhd, Supermax Corp Bhd, Petronas Chemicals Group Bhd, Malaysia Airports Holdings Bhd, Top Glove Corp Bhd, LPI Capital Bhd, Ta Ann Holdings Bhd and Johore Tin Bhd.

The actives included AT Systematization Bhd, UCrest Bhd, Vsolar Group Bhd, Green Packet Bhd, KNM Group Bhd, JAG Bhd, Prestariang Bhd and OpenSys (M) Bhd.

The gainers included Nestle (M) Bhd, Petronas Dagangan Bhd, Manulife Holdings Bhd, Hong Leong Financial Group Bhd, Kossan Rubber Industries Bhd, Heineken Malaysia Bhd, PPB Group Bhd, Dutch Lady Milk Industries Bhd and YNH Property Bhd.

Bloomberg said Asian stocks were mixed as investors weighed the recent rally in risk assets alongside evidence of a US economic recovery and lingering concern over further coronavirus outbreaks.

The US dollar steadied following gains, it said.

Hong Leong IB Research said taking cue from the recent relief rally in Wall Street, the KLCI is likely to continue its technical rebound from the June 15 low of 1,490 to retest key long-term downtrend resistance at 1,543.

Nevertheless, domestic uncertainties due to potential snap election in 2H20 and lifting of short-selling ban post June 30 may dampen sentiment and cap further rally.

Meanwhile, news of number forecast operators resuming operations today, after shutting their doors since the MCO began on March 18, are likely to draw some trading interests on Berjaya Sports Toto Bhd (~7% FY21E DY; resistance RM2.47-2.60) and Magnum Bhd (~5.4% FY21E DY; resistance RM2.50-2.60).