No Respite For Bursa Malaysia As KLCI Slips Early Tuesday

No Respite For Bursa Malaysia As KLCI Slips Early Tuesday -  There was no respite for investors early Tuesday as blue chips extended their recent losses with Sime Plantations continuing to fall since last Thursday’s listing.

At 9.16am, the FBM KLCI was down 1.14 points or 0.07% to 1,711.99. Turnover was 194.19 million shares valued at  RM77.83mil. There were 141 gainers, 150 losers and 214 counters unchanged.

Reuters reported Asian shares were subdued as investors' rotation out of technology shares took the toll on some of the region's tech heavyweights although hopes of a major tax cut in the United States underpinned risk sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan were capped by the fall in the region's technology shares, with Samsung Electronics losing 1.5%.

Reuters reported Japan's Nikkei fell 0.4%, with semiconductor-related shares such as Tokyo Electron and Shin-etsu Chemical leading the losses.

On the technical outlook for the KLCI, Kenanga Research said at the current juncture,  the index continues to remain bearish, with key simple moving averages (SMAs) having already formed a “death-cross” while key indicators continue their directionless movements. 

“With that said, we do not discount the possibility of a near-term rebound given the deeply oversold Stochastic indicators. 

“Notably, yesterday’s move marks as yet another retest against its crucial support of 1,714 (S1), with a decisive break below to be deemed as highly negative, giving the index a potential clear path to capitulate downwards towards psychological barrier at 1,700 (S2).

“Conversely, should the market see an improvement, upside resistances can be found at 1,734 (R1) and 1,750 (R2),” it said.

BAT fell the most, down 66 sen to fresh multi-year lows of RM37.20. Allianz lost 30 sen to RM14 in thin trade while Ulicorp was down 22 sen to RM3.80.

Sime Plantations fell for the third day, down 17 sen to RM4.68, Tenaga 12 sen lower at RM15.46, MPI 10 sen to RM12.50 and Petron eight sen lower to RM11.16.

Lafarge rebounded 16 sen to RM6.77, Hong Leong Bank added 16 sen to RM15.46 while KL Kepong gained 12 sen to RM24.50 and PPB Group 10 sen to RM16.84. 

Hartalega recouped part of the previous day’s losses to add seven sen  to RM9.22 while Petronas  Gas was up six sen to RM16.