KLCI pares loss to climb above 1,600 level but sentiment stays negative

TheEdge Tue, Aug 06, 2019 12:50pm - 4 years View Original


KUALA LUMPUR (Aug 6): The FBM KLCI clawed back to pare down most of its losses at the midday break and climb above the crucial 1,600-point level, but the broader market sentiment remained negative as global losses steepened.

At 12.30pm, the FBM KLCI was down 0.07 points to 1,610.34. The index had earlier fallen to a low of 1,588.98.

Market breadth was negative as losers led gainers by 421 to 184, while 593 counters traded unchanged. Volume was 1.91 billion shares valued at RM1.32 billion.

The decliners included Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd, Hong Leong Bank Bhd, Carlsberg Brewery Malaysia Bhd, Aeon Credit Service (M) Bhd, Public Bank Bhd, Panasonic Manufacturing Malaysia Bhd, LPI Capital Bhd and Time Dotcom Bhd.

The actives included KNM Group Bhd, NetX Holdings Bhd, Sapura Energy Bhd, Genting Malaysia Bhd, Bumi Armada Bhd and AirAsia Group Bhd.

The gainers included United Plantations Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Petronas Chemicals Group Bhd, Top Glove Corp Bhd, G3 Global Bhd and Kluang Rubber Company (Malaya) Bhd.

Global stocks extended already substantial losses on Tuesday as China's yuan currency dropped to an 11-year low after Washington designated Beijing a currency manipulator in a rapid escalation of the US-China trade war, according to Reuters.

Safe-haven assets, including bonds and some currencies such as the yen and Swiss franc, benefited as investors scurried to avoid risk, it said.

Hong Leong IB Research said the Dow closed lower for the fourth trading day amid escalating trade tensions and lost near to 1,500 points since last Wednesday.

"The MACD (moving average convergence divergence) indicator expanded negatively below zero, but both the RSI (relative strength index) and Stochastic oscillators are threading within the oversold region. Resistance will be set along 26,000, while next support is located around 25,500.

"On the local front, we anticipate further selling activities, especially [in] the technology sector following a slump in the US markets, which [was] led by tech giants such as Apple.

"Also, with the China yuan located above 7 (depreciation bias), emerging markets currencies such as ringgit may [in] turn extend its weakening bias mode over the near term and the FBM KLCI may revisit the region of 1,580-1,600," it said.

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