KLCI remains in the red as blue chips dip on profit taking



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KUALA LUMPUR (April 10): The FBM KLCI remained in the negative territory at the midday break today as select blue chips dipped on mild profit taking as investors stayed on the sideline in the absence of fresh local catalysts.

At 12.30pm, the FBM KLCI was down 3.50 points to 1,845.89.

Market breadth turned negative with losers outpacing gainers by 365 to 327, while 321 counters traded unchanged. Volume was 944.25 million shares valued at RM752.53 million.

The top losers included Lafarge Malaysia Bhd, Oriental Food Industries Holdings Bhd, Malayan Banking Bhd, Oriental Interest Bhd, P.I.E. Industrial Bhd, Genting Plantations Bhd, British American Tobacco (M) Bhd, Ibraco Bhd and Sasbadi Holdings Bhd.

The actively traded stocks included Frontken Corporation Bhd, Kangher International Bhd, Netx Holdings Bhd, KNM Group Bhd, Sumatec Resources Bhd, Xinghe Holdings Bhd, Takaso Resources Bhd, Ho Wah Genting Bhd and Bumi Armada Bhd.

The top gainers included DanaInfra Nasional Bhd, PPB Group Bhd, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Tiong Nam Logistics Bhd, KLCC Property Holdings Bhd, Telekom Malaysia Bhd and Aeon Credit Services (M) Bhd.

Asian shares advanced close to recent highs on Friday and were on track for weekly gains, while the dollar gave up some of its overnight rise, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.5%, not far from the previous session's peak which was the highest since September, and on track for a robust weekly gain of over 3%, it said.

AffinHwang Capital Research said that as at the end of last week the FBM KLCI seemed engross to push the index higher backed by erratically low volumes sessions.

It said that as such, a very short term trend currently remain upward with immediate resistance shifted from 1,835 to 1,846 points, while strong short term support range anticipated to be between 1,800 to 1,810.

The research house said both MACD and RSI indicate upward underlying momentum for the index.

“A close watch on negative divergences of the volume and underlying momentum would be critical in our view in the near future as we anticipate current short term rally to potentially near its peak in the near future,” it said.