KLCI drifts lower on mild profit taking but defends 1,600-level

TheEdge Tue, Nov 05, 2019 09:13am - 4 years View Original


KUALA LUMPUR (Nov 5): The FBM KLCI drifted lower but stayed above the crucial 1,600-level in early trade Tuesday on some mild profit taking on index-linked stocks, led by Tenaga Nasional Bhd.

At 9.05am, the FBM KLCI shed 1.55 points to 1,602.01.

The early decliners included Hong Leong Bank Bhd, Petronas Chemicals Group Bhd, Tenaga Nasional Bhd, Press Metal Aluminium Holdings Bhd, Yinson Holdings Bhd, Cycle & Carriage Bintang Bhd, Dufu Technology Bhd, Malaysia Airport Holdings Bhd and Toyo Ink Group Bhd.

Asian shares closed in on their July peak on Tuesday on increasing signs the United States and China are inching closer to a truce in their trade war and on optimism the U.S. economy is well poised for solid, consumer-driven growth, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trade after hitting a four-month high the previous day, it said.

CGS-CIMB Retail Research said despite the weaker-than-expected Malaysia’s September exports, the KLCI continued to gain another 10 points yesterday.

It said some mild profit taking activities may take place ahead of the outcome of Bank Negara Malaysia’s OPR rate decision later today estimated at 3pm.

“However, given the growing US-China trade hopes, our CGS-CIMB economist expects the next OPR cut to take place in 1H20 instead of in November.

“Coupled with the overnight record-breaking Wall Street close, the local market may continue its upward momentum today. Resistance: 1,620 & 1,637. Support: 1,600 & 1,577,” it said.

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