KLCI slumps 0.65%, negative market breadth tracks global fall

KLCI slumps 0.65%, negative market breadth tracks global fall
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KUALA LUMPUR (Dec 4): The FBM KLCI slumped 0.65% at the midday break Wednesday as market breadth remained negative in line with the fall at most global markets.

At 12.30pm, the FBM KLCI lost 10.12 points to 1,552.15.

Losers led gainers by 365 to 185, while 509 counters traded unchanged. Volume was 1.2 billion shares valued at RM721.55 million.

The losers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Public Bank Bhd, Chin Teck Plantations Bhd, Dutch Lady Milk Industries Bhd, Malaysian Pacific Industries Bhd, Carlsberg Brewery Malaysia Bhd, Kuala Lumpur Kepong Bhd, Maxis Bhd and UMS-Neiken Group Bhd.

The actives included Impiana Hotels Bhd, Mudajaya Group Bhd, Bina Puri Holdings Bhd, Alam Maritim Resources Bhd, Sanichi Technology Bhd, IFCA MSC Bhd, MTAG Group Bhd and Ekovest Bhd.

The gainers included IGB Bhd, United Plantations Bhd, Edaran Bhd, Favelle Favco Bhd, Zecon Bhd, Mudajaya, Astramina Group Bhd and Syarikat Takaful Malaysia Keluarga Bhd.

Most Southeast Asian stock markets tracked a global downturn on Wednesday as the Trump administration dashed hopes of a quick preliminary deal to halt impending US tariffs on China, according to Reuters.

US President Donald Trump on Tuesday said he had "no deadline" for a trade deal with China, and could wait until after the US presidential election in November 2020 to sign an agreement, it said.

Affin Hwang Capital Research said the FBM KLCI turned lower in yesterday's session, shedding 8.28 points or 0.53%, closing at 1,562.27.

The research house said that looking from a technical standpoint, several factors support a further drop in price: price is trading well below the key daily exponential moving averages (EMAs), which suggests a bearish bias; moving average convergence divergence (MACD) has just crossed below the zero level which may prompt further weakening in price; relative strength index (RSI) and Stochastic indicators remain weak with no clear signs of a reversal; and correction in the US market for three consecutive days.

"Overall, downward bias remains.

"Prevailing downward trend resumes. Index to retest 1,550 in the near term," it said.