KLCI reverses loss, sentiment stays mixed

-A +A

KUALA LUMPUR (Feb 21): The FBM KLCI reversed its losses at mid-morning today amid some choppy trading, as broader market sentiment remained mixed.

At 10am, the FBM KLCI was up 0.3 points to 1,856.29. The index had earlier dipped to a low of 1,852.14.

Gainers led losers by 267 to 231, while 285 counters traded unchanged.

Volume was 432.35 million shares valued at RM281.74 million.

The top gainers included Nestle (M) Bhd, Hengyuan Refining Company Bhd, Malaysian Pacific Industries Bhd, UEM Edgenta Bhd, Malaysia Airports Holdings Bhd, Petron Malaysia Refining & Marketing Bhd, Magni-Tech Industries Bhd, Petronas Gas Bhd and Superlon Holdings Bhd.

The actives included Hibiscus Petroleum Bhd, Sumatec Resources Bhd, Sino Hua-An International Bhd, Sapura Energy Bhd, UMW Oil & Gas Corp Bhd and Lotte Chemical Titan Holding Bhd.

The decliners included Hong Leong Bank Bhd, Fraser & Neave Holdings Bhd, Dutch Lady Milk Industries Bhd, Kossan Rubber Industries Bhd, Genting Bhd, Bursa Malaysia Bhd, Hartalega Holdings Bhd and ViTrox Corp Bhd.

Stock markets dipped after a long winning run on Wall Street ended overnight, while the US dollar gained momentum on Wednesday as yields on US Treasury debt headed for highs not seen in four years, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.15%. Japan's Nikkei shed 0.2%, it said.

Hong Leong IB Research in a traders' brief said following yesterday slide, the Dow's near-term outlook has turned mildly negative after falling below the 50-day SMA support near 25,200.

It said choppiness will prevail amid concerns over inflationary pressures and spiking bond yields, which hit a four-year high at 2.91% on Feb 15 before ending at 2.89% overnight, ahead of the March 20-21 FOMC meeting. Immediate resistance is 25,600 while support falls on 24,000 levels.

"While sustained buying on selected blue chips heavyweights continue to cushion any sharp fall in the FBM KLCI due to spillover effect from overnight Dow's 1% fall, keen profit-taking and selling interest could check gains on the broader market.

"Moreover, any negative surprises from ongoing February reporting season and uncertainty over the upcoming GE14 could induce further profit-taking pullback," it said.