KLCI drifts lower in line with cautious region

KUALA LUMPUR (Oct 21): The FBM KLCI drifted lower in early trade Monday, in line with cautious regional markets.

At 9.05am, the FBM KLCI dipped 3.33 points to 1,567.82.

The losers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Scientex Bhd, Petronas Dagangan Bhd, Westports Holdings Bhd, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Hong Leong Industries Bhd, Cahya Mata Sarawak Bhd and Hong Leong Bank Bhd.

Asian stocks were steady in a cautious start to the week on Monday, while the British pound fell following a delay to a crucial vote on Britain’s divorce from the European Union, according to Reuters.

MSCI’s broadest index of Asia-Pacific shares outside Japan were flat, with Australian shares off down 0.3%. Japan’s Nikkei rose 0.13%, it said.

CGS-CIMB Retail Research said the FBMKLCI closed 0.9% higher week-on-week while the lower liners stocks rose by a larger quantum amid a rotational play from big cap equities to smaller entities across Bursa Malaysia.

It said the local lower liners stocks are anticipated to continue with their rotational play in the following days after the Bursa ACE index broke out of its 10-month symmetrical triangle formation recently.

“Our short-term positive view on the Bursa ACE index would be incorrect if the index claws back below the 200-day EMA,” it said.

Source: TheEdgeMarkets