KLCI dips 0.58% as select blue chips weigh on profit taking

mid_morning_market_down_theedgemarkets

mid_morning_market_down_theedgemarkets

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KUALA LUMPUR (Jan 12): The FBM KLCI dipped 0.58% at mid-morning on Monday as select blue chips skid on mild profit taking.

At 10.01am, the FBM KLCI fell 10.12 points to 1,722.32.

The top losers included Petronas Gas Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Hong Leong Bank Bhd, Malaysia Building Society Bhd, Petronas Dagangan Bhd, Malayan Banking Bhd and Sime Darby Bhd.

The actives included Hubline Bhd, Minetech Resources Bhd, Sumatec Resources Bhd, IFCA MSC Bhd, Evergreen Fibreboard Bhd and Bumi Armada Bhd.

The gainers included British American Tobnacco (M) Bhd, Perak Corporation Bhd, Eastern & Oriental Holdings Bhd, Hiap Teck Ventures Bhd, Evergreen Fiberboard, UMW Holdings Bhd and Top Glove Corporation Bhd.

At the global markets, the U.S. dollar took an early dip on Monday as Asian investors caught up with a benign payrolls report and the subsequent slide in Treasury yields, though turnover was light with Tokyo on holiday, according to Reuters.

Share markets were opening lower following a soft finish on Wall Street though sentiment was supported by speculation the Federal Reserve would be patient in tightening policy given the weakness of wages apparent in the jobs numbers, it said.

Hong Leong IB Research said that last week, the FBM KLCI  managed to find some buying support at 1700, backed by mild recovery in technical oscillators but further rebound will be capped near 1,743 (10-d SMA) and 1,748 (downtrend line) levels due to concerns over the health of the Malaysian economy and corporate earnings, weak ringgit, choppy crude oil prices and renewed uncertainties in the mega CIMB/RHBCAP/MBSB merger.

“Supports are near 1,700-1,720,” it said.