Market lacklustre, technical outlook for KLCI still fragile

KUALA LUMPUR: Blue chips were unchanged early Friday in the absence of strong fresh rerating catalysts as most corporate results for the quarter ended Sept 30 disappointed while the outlook for the FBM KLCI remained fragile.

At 9.11am, the KLCI was up by 0.07 of a point to 1,695.62. Turnover was 106.09 million shares valued at RM53.68mil. There were 91 gainers, 138 losers and 158 counters unchanged.

Asian shares barely budged in early trade as investors were reluctant to make any big bets in the face of trade tensions, signs of slowing earnings and Brexit negotiations, Reuters reported.

The MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1%, Australian shares were up 0.23%, and Seoul’s Kospi was flat.

Kenanga Research said the technical outlook for the KLCI remains fragile for now as the index is still hovering below key SMAs.

“Should there be further positive development, we may review our stance,” it said.

From here, immediate support levels to watch for are 1,680 (S1) and 1,650 (S2) where a break below would complete what is now a potential descending triangle.

Should the market sentiment improve from here, key levels of resistance to look for are at 1,740 (R1) and 1,760 (R2), it said.

Allianz rose 38 sen to RM12.38 after stronger quarterly earnings, Muda 17 sen to RM2.05, MBM Resources 13 sen to RM2 and Fima Corp 11 sen to RM1.86.

Among the KLCI stocks, Hap Seng added nine sen to RM9.99 on firmer earnings. MISC lost 14 sen to RM6.33.

Pos Malaysia eked out a mild rebound, up nine sen to RM2.67 after falling nearly 20% on Thursday after swinging into the red.

Orna seven sen to RM1.17 and GHL Systems six sen higher at RM1.67.

MPI added eight sen to RM11.66 but KESM tumbled RM1.17 to RM9.39 and Dufu nine sen to RM3.80 and Pentamaster seven sen lower at RM3.23. Revenue Group lost seven sen to RM1.45.

Source: TheStar