FBM KLCI, ringgit slightly lower in early trade

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KUALA LUMPUR: The FBM KLCI and ringgit traded lower today despite gains on Wall Street overnight amid market jitters on interest rates.

At 9.13am, the FBM KLCI dipped 1.06 points to 1,385.710. The index opened marginally higher at 1,387.69.

The ringgit was quoted at 4.6265, down 0.14%.

Overnight, the Dow Jones Industrial Average climbed 189.55 points, or 0.56%, to close at 34,066.33. The S&P 500 added 0.93% to close at 4,338.93 and Nasdaq Composite closed up 1.53% to 13,461.92

Rakuten Trade Sdn Bhd reckoned the index to hover within the 1,380-1,390 range and if there is a decisive breakout from 1,390, we may see 1,400 as the next target.

“Meanwhile, we believe the energy sector to see some headwinds as crude oil prices continued to decline with the Brent crude dipped to below the US$72 per barrel ahead of the FOMC meeting,” it said.

Inter-Pacific Research said with the recent bounce, the market undertone is showing improved signs that may prolong the key index’s upsides as it also looks to recover further from its oversold conditions, even as there are few noteworthy domestic leads.

It said although the ongoing upsides among key global and regional equities have largely been a non-event to Malaysian equities, their positivity may still generate some near-term impetus for the recovery to sustain after the 1,380 turned-support level has been cleared.

“The key index could now be targeting the 1,390 and 1,395 levels over the near term, while the immediate support is at 1,382 level.

“We also see the lower liners and broader market shares making further

headway amid the improved sentiments that could also encourage the

return of more retail players. As it is, many of these lower liners are also

on a recovery trend and their upsides looks to continue over the near term,” the research house said.

Among the losers on Bursa Malaysia, Kuala Lumpur Kepong eased 18 sen to RM21.86, Heineken fell 14 sen to RM27.10 and PETRONAS Chemicals lost nine sen to RM6.56.

F&N rose 44 sen to RM25.22, Malaysian Pacific Industries gained 48 sen to RM27.82, YNH Property added 10 sen to RM4.80 and BIG Industries cloned 9.5 sen to 73.5 sen.

Kumpulan Jetson, the most active counter on Bursa Malaysia eased nine sen, 21.18% to 33.5 sen with 30.4 million shares done.

– The Star

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