KUALA LUMPUR (June 11): The FBM KLCI dropped 0.26% today, bucking the regional upward trend, as profit taking emerged on selected index-linked counters, for instance banking stocks.
The benchmark index dropped 4.27 points to 1,651.20 points, from 1,655.47 points on Monday. The benchmark index hovered between 1,649.81 and 1,657.36 throughout the trading session today.
Across the board, trading volume is lower today at 2.24 billion shares worth RM2.03 billion compared with 2.28 billion shares worth RM1.79 billion yesterday.
Overall market breadth was positive, with 387 gainers versus 324 losers, while 493 counters remained unchanged.
"The FBM KLCI underperformed its regional peers (today) due to profit taking in selected heavy weights, such as Tenaga Nasional Bhd, Hong Leong Bank Bhd, RHB Bank Bhd and Malayan Banking Bhd (Maybank)," Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.
"The immediate resistant level (for FBM KLCI) is at 1,665 points while the support level is 1,640 points," he added.
Tenaga topped the loser list in terms of value. The utility stock shed 2.2%, or 28 sen, to RM12.48.
Meanwhile, banking stocks also fell, with Hong Leong Bank down by 1.25% or 24 sen to RM18.98, RHB Bank sank 1.03% or six sen to RM5.79, while Maybank fell 0.55% or five sen to RM8.99.
Across the region, Japan's Nikkei 225 was up 0.33% today along with South Korea's Kospi, which gained 0.59%. China's Shanghai Stock Exchange Composite climbed higher by 2.58% while the Hong Kong's Hang Seng Index gained 0.76%.
Reuters reported that Asian stocks, led by Chinese shares, gained on Tuesday as markets basked in relief following the US decision to hold off from imposing import tariffs on Mexico as the two governments agreed a deal to combat illegal migration from Central America.
"Relief that the US had stepped back from an immediate imposition of tariffs on Mexico encouraged buyers, though US Secretary of State Mike Pompeo warned the United States could still slap tariffs on Mexico if not enough progress was made on its commitment to stem illegal immigration.
"While global markets have been given some reprieve, fresh US trade threats against China were seen limiting any major boost to investor sentiment," it added.
"The US President Donald Trump said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit.
"The US president has repeatedly said he expected to meet Xi at the June 28-29 summit in Osaka, Japan, although China is yet to confirm any such meeting," it further added in the report.