KLCI stays under pressure as regional markets slip

KLCI stays under pressure as regional markets slip
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KUALA LUMPUR (Dec 30): The main index at Bursa Malaysia remained under pressure in early trade on the penultimate day of 2020 in line with the slip at regional markets.

At 9.05am, the FBM KLCI dipped 0.92 points to 1,634.07.

The decliners included Heineken Malaysia Bhd, Teck Guan Perdana Bhd, Perusahaan Sadur Timah Malaysia (PERSTIMA) Bhd, UWC Bhd, MI Technovation Bhd, Malayan Banking Bhd (Maybank), Berjaya Food Bhd and Tenaga Nasional Bhd (TNB).

Bloomberg said Asian stocks slipped Wednesday after U.S. equities pulled back from record highs on fading prospects for bigger government aid checks to individuals.

The dollar weakened, it said.

Rakuten Trade said Wall Street closed lower as profit taking activities emerged after all the major indices opened on fresh record highs.

It said the Dow Jones Industrial Average closed 68 points lower to end the session at 30,335 level. As such, we expect regional markets to be rather mixed today.

“Domestically, we believe the FBM KLCI may continue to be weigh down by selling activities on rubber gloves stocks thus expect the benchmark index to test its immediate support of 1,630 today.

“Meanwhile, the extension of vehicle sales tax exemption by another 6 months may induce some buying interests on Auto stocks with DRB-Hicom Bhd as our favourite.

“Also, Kim Loong Resources Bhd’s latest quarterly earnings had more than doubled due to higher CPO prices may be the start of positive developments to come for the rest of the planters,” it said.