KLCI retreats in early trade as Asian markets dip

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KUALA LUMPUR (Nov 4): The FBM KLCI retreated in early trade on Tuesday, in line with the dip at mosr regional markets following the weaker overnight close at Wall Street.

At 9.01am, the FBM KLCI shed 1.43 points to 1,851.91.

The top losers on Bursa included BAT, PPB, Lafarge Malaysia, Timecom, UMW, PetronasGas, Genting, MAHB and Globetronics.

Regionally, Asian stocks dipped in early trade on Tuesday with disappointing Chinese data and a Wall Street slip dampening the mood, although Japan bucked the trend and rose sharply on follow-through momentum generated the Bank of Japan's surprise monetary easing last week, according to Reuters.

The dollar was firmly on the front foot, hovering at multi-year highs against the yen and euro, after the BOJ's easing on Friday added pressure on the European Central Bank to follow suit, it said.

BIMB Securities Research in a market preview Tuesday said key Asian markets were mostly lower on Monday on profit taking after last week’s rally.

It said Japan was closed for a holiday while Hong Kong shares finished lower as investors took profits following solid gains last week.

The research house said that locally, the FBM KLCI closed in the red on profit taking of Petronas Gas, CIMB and FGV but the selling pressure was absorbed by buying support for Tenaga and telcos.

It said at the close, the FBM KLCI was down 1.81 points or 0.1% to 1,853.34.

“Turnover was 1.86 billion shares valued at RM1.89 billionn. The broader market was mixed with 422 gainers, 449 losers and 288 counters unchanged.

“For today, we expect market to trade sideways with immediate resistance at 1,858 and support at 1,848,” it said.