KLCI drifts lower, seen tracking pause at regional markets

KUALA LUMPUR (Nov 7): The FBM KLCI drifted lower in early trade this morning and is seen tracking the pause at regional markets.

At 9.10am, the FBM KLCI fell 1.72 points to 1,601.53.

The decliners included Fraser & Neave Holdings Bhd, Nestle (M) Bhd, Hong Leong Bank Bhd, Sime Darby Plantations Bhd, Hartalega Holdings Bhd, Lii Hen Industries Bhd, Genting Bhd and Public Bank Bhd.

Reuters reported that Asian shares paused near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-U.S. trade deal left investors frustrated at the lack of concrete progress.

MSCI’s broadest index of Asia-Pacific shares outside Japan was a shade lower, just off a six-month high hit earlier in the week, it said.

CGS-CIMB Retail Research said tracking the mixed performance across the Asia markets, the FBMKLCI index drifted lower but stayed above the 1600 level yesterday on some mild profit-taking activities.

It said cautious sentiment may prevail given the trade-deal uncertainty as Trump-Xi meeting to sign the deal could be delayed.

“Moreover, local market may take a breather today as some profit-taking activities may emerge after both KLCI and Bursa ACE index gained nearly 3.5% and 9.7% respectively over the past four trading weeks.

“Resistance: 1,620 & 1,637. Support: 1,600 & 1,577,” it said.

Source: TheEdgeMarkets