KLCI falls in early trade in line with wobbly regional markets

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KUALA LUMPUR (Nov 7): The FBM KLCI fell in early trade on Frida, in line with the wobbly regional markets, weighed by losses at slect blue chips.

At 9am, the FBM KLCI fell 4.22 points to 1,827.76.

The top losers included Kuala Lumpur Kpeong Bhd, Hong Leong Financial Group Bhd, Sime Darby Bhd, Telekom Malaysia Bhd, IJM Corporation Bhd, Utusan Melayu (Malaysia) Bhd, Alliance Financial Group Bhd, Lysaght Galvanized Steel Bhd, AMMB Holdings Bhd, S P Setia Bhd and MISC Bhd.

Regionally, Asian shares wobbled in early trading on Friday, while the euro wallowed around two-year lows after European Central Bank President Mario Draghi vowed to take more easing steps to spark growth in the euro zone, according to Reuters.

Investors were likely to remain cautious ahead of the key U.S. nonfarm payrolls report later in the session. Solid gains in employment would increase speculation that the U.S. Federal Reserve could raise U.S. interest rates in the middle of next year, it said.

Hong Leong IB Research in a market preview Friday said that after falling 23 points in four straight sessions, the FBM KLCI may stage a mild technical rebound today, thanks to an overnight record close from Dow and reassurance by ECB on further stimulus measures.

“However, any rebound could be capped near 1,850 (200-day moving average) and downtrend line at 1,860 zones, given the deteriorating technical landscape and ongoing 3Q14 reporting season.

“Short term supports are situated at 1,825 (30-day moving average), 1816 (38.2% FR) and 1,800 levels,” it said.