KLCI stays below 1,700 level amid mixed regional markets

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KUALA LUMPUR (Nov 30): The FBM KLCI remained below the 1,700-point level at the midday break today, against the backdrop of mixed regional markets.

At 12.30pm, the FBM KLCI dipped 1.35 points to 1,694.99. The index had earlier risen to its intra-morning high of 1,702.98.

Losers led gainers by 464 to 238, while 306 counters traded unchanged. Volume was 1.27 billion shares valued at RM931.36 million.

The losers included Malaysian Pacific Industries Bhd, Padini Holdings Bhd, Hong Leong Industries Bhd, Nestle (M) Bhd, SAM Engineering & Equipment (M) Bhd, PPB Group Bhd, LPI Capital Bhd, Southern Steel Bhd, Uzma Bhd and Time dotCom Bhd.

The actives included Bumi Armada Bhd, Jaks Resources Bhd, My EG Services Bhd (MyEG), Hubline Bhd, Genting Malaysia Bhd, Daya Materials Bhd, Sanichi Technology Bhd, Velesto Energy Bhd and Sapura Energy Bhd.

The gainers included United Plantations Bhd, Magni-Tech Industries Bhd, Petronas Gas Bhd, APM Automotive Holdings Bhd, AirAsia Group Bhd, MyEG, RHB Bank Bhd, Genting Malaysia, Focus Lumber Bhd and IHH Healthcare Bhd.

Asian stocks looked set to round out the month in mixed fashion as investors await a crucial meeting between the US and Chinese presidents with the course of the trade war at stake. Benchmark Treasury yields held near the lower since September, according to Bloomberg.

Shares edged higher in Tokyo, slipped in Seoul and slumped in Sydney. The S&P 500's rally faded late in the day on Thursday. Doubts remain about prospects for Presidents Donald Trump and Xi Jinping to agree to a thaw in bilateral relations. The 10-year Treasury yield was steady after briefly dipping below 3% on Thursday. Data showing China's economy that remains in a weak patch had little impact, with Shanghai and Hong Kong stocks rising, it said.

Affin Hwang Capital Research said the FBM KLCI Index gained 9.79 points on Thursday to close at 1,696.34, just below the 1,700 level.

It said bullish divergence can be spotted in moving average convergence divergence (MACD) on the daily chart whereby prices are moving sideways but MACD is moving higher.

The research house said this may indicate a potential reversal higher in the near term, adding that if prices manage to break above the 20-day exponential moving average today, it will be slightly more positive for the local index

"Nonetheless, upside anticipated to be limited towards the 1,730 level as the direction is still pointing towards a downtrend.

"Anticipate local stocks to move in tandem with the global markets weakness," it said.