KLCI sees limited gains as regional markets slump

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KUALA LUMPUR (Oct 1): The FBM KLCI saw limited gains at the midday break on Wednesday, while regional markets were mostly down on worries of the ongoing civil unrest in Hong Kong.

At 12.30pm, the FBM KLCI shed 0.27 points to 1,846.58.

The top gainers included Dana Infra, Hong Leon Industries, Pintaras, SPB, Keck Seng, Warisan, HLFG, LPI Capital, Vitrox, MPI, Datasonic, Fututec and Tasek.

The actives included Sanichi, Asia Bio, Xing He, MUI Industries, KNM, Daya Materials, Emico and Hubline.

The decliners included United Plantations, BLD Plantation, Atlan, UMW, IJM Plantations, KSL, Goh Ban Huat, Huat Lai and Genting.

Regionally, Asian shares slumped on Wednesday as continued civil unrest in Hong Kong and a downbeat day on Wall Street sapped confidence, while the dollar index was close to a four-year high after marking its best quarterly gain in six years, according to Reuters.

Trading in Asia was subdued with China closed for National Day and investors warily monitoring Hong Kong's pro-democracy unrest, as thousands of protesters stepped up pressure on the city's pro-Beijing government, it said.

Maybank IB head of retail research and chief chartist Lee Cheng Hooi in a note to clients said the FBM KLCI inched down by 0.03 points to 1,846.31 yesterday, while the FBMEMAS and FBM100 also closed lower by 3.15 points and 2.82 points, respectively.

“We recommend a “Range Trading” stance for the index. The KLCI Oct Futures moved into a larger 4.31-point discount against the FBMKLCI.

“We expect minor buying interest at the supports of 1,831 to 1,846, whilst heavy liquidation would be at the resistances of 1,854 and 1,870.

“The index is now below the 200 simple moving average and is very bearish in the medium-to-long term, compounded by a bearish Rising Wedge breakdown. Continue selling into this minor rebound move,” he said.