KUALA LUMPUR (April 30): The FBM KLCI drifted lower in early trade this morning, tracking the decline at most regional markets, dragged by losses at index-linked blue chips.

At 9.05am, the FBM KLCI was down 2.10 points to 1,635.30.

The losers included Nestle (M) Bhd, Hong Leong Bank Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Sime Darby Plantation Bhd, UMW Holdings Bhd, IHH Healthcare Bhd, Petronas Gas Bhd, UOA Development Bhd and AMMB Holdings Bhd.

Asian stocks declined in early trading Tuesday ahead of key China data that will provide clues on global economic growth. U.S. stocks rose above record highs and Treasuries fell, according to Bloomberg.

Equities in Sydney and Seoul dropped, while futures signaled a muted open in Hong Kong. Japanese markets are closed for the week. The S&P 500 Index edged higher to top its record as financial companies led gains on Monday. Crude stabilized after a volatile session as a severe crackdown on Iranian oil exports approaches, it said.

Kenanga IB Research said Asian markets were mostly higher yesterday, aided by good data from China industrial firms.

However, it said the FBMKLCI declined by 0.98 points (-0.06%) to close at 1,637.40 as T+2 settlement starts.

“Short-term consolidation could be the case for this week trading, given momentum indicators still displaying some weaknesses as seen in the flat-lining of MACD and RSI.

“A decisive take-down of the 1,660 (R1) is vital for the local index to trend upwards towards 1,700 (R2). 

“Reluctance to go beyond R1, would see the index retrace towards 1,615 (S1) and 1,600 (S2),” it said.