KLCI slips on profit taking, blue chips dip

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KUALA LUMPUR (March 20): The FBM KLCI slipped in early trade on Friday, weighed by profit taking on select blue chips after the rally over the past three days that had lifted the index by some 29 points.

At 9am, the FBMKLCI fell 5.57 points to 1,803.56.

The top losers included PPB Group Bhd, Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd, RHBCapital Bhd, Kossan Rubber Industries Bhd, MISC Bhd, Globetronics Technology Bhd, Telekom Malaysia Bhd, Westports Holdings Bhd and Tenaga Nasional Bhd.

Asian stocks slipped on Friday as Federal Reserve-inspired gains petered out, while the dollar steadied after rebounding from the shock of a surprisingly dovish U.S. central bank, accortding to Reuters.

Japan's Nikkei shed 0.2 percent and South Korean and Australian shares posted similar losses, it said.

Hong Leong IB Research in a market preview Friday said the FBM KLCI may encounter a mild profit taking after jumping 29 points in three days.

“Overnight decline in Dow and oil prices could also dampen sentiment curb.

“Unless the FBM KLCI can swiftly stage a strong breakout above 1814-1825 levels in the near term, there is still a high likelihood that the index is likely to resume its downward consolidation toward 1750-1770 zones in April, given nagging domestic concerns such as GST risks, Ringgit weakness, depressed oil prices, IMDB debt saga and potential Fitch downgrade on Malaysia’s credit rating,” it said.