KLCI retreats as Tenaga and Top Glove drag

KUALA LUMPUR (April 11): The FBM KLCI retreated in early trade this morning as Tenaga Nasional Bhd and Top Glove Corporation Bhd dragged the local index against the backdrop of mixed regional markets.

At 9.05am, the FBM KLCI fell 2.77 points to 1,636.69.

The early decliners included Nestle (M) Bhd, Tenaga Nasional, Petronas Chemicals Group Bhd, Top Glove, Can-One Bhd, Westports Holdings Bhd, Lafarge Malaysia Bhd, RHB Bank Bhd and Petron Malaysia Refining & Marketing Bhd.

Asian stocks traded mixed Thursday after the Federal Reserve did little to alter investor expectations that interest rates in the U.S. are likely on hold for the remainder of this year. Treasuries steadied, according to Bloomberg.

Shares slipped in Japan and Australia, and were little changed in Seoul. Earlier, the S&P 500 Index posted modest gains as unexpectedly soft inflation boosted the Fed’s wait-and-see approach to rate hikes. Australian bonds climbed, tracking overnight moves higher in sovereign debt as central bankers detailed weakness in the economic outlook. The pound was steady as European Union leaders agreed to extend the date of Britain’s departure from the bloc to Oct. 31, it said.

Kenanga IB Research said Asian markets closed mixed after the International Monetary Fund reduced its 2019 growth forecast to 3.3% from 3.5%.

It said back home, the FBMKLCI slipped another 2.48 points (-0.15%) to close at 1,639.46 yesterday.

“The index appears to be consolidating, evidenced by the narrowing distance between the key SMAs.

“However, we believe there is a possibility that the index may rebound in the near term, as RSI seems to be bouncing off from the oversold zone.

“We look towards 1,660 (R1) and 1,700 (R2) as resistance levels,” it said.

Source : TheEdgeMarkets