FBM KLCI slips into the red, tracking regional declines

KUALA LUMPUR: The FBM KLCI slipped into the red at midday after striking a high of 1,445.14 in early trade, as profit booking set in.

At 12.30pm, the benchmark index declined one point, or 0.07% to 1,441.51. It had slipped to a low of 1,438.80.

The advance-decline ratio on Sensex turned negative, with 260 advances to 428 declines and 401 stocks remaining unchanged.

Among the decliners on Bursa Malaysia, Nestle tumbled RM2.40 to RM124.20, Kuala Lumpur Kepong eased 34 sen to RM22.06, Rapid fell 34 sen to RM25.92 and LPI lost 18 sen to RM11.82.

KESM rose 25 sen to RM7.15, Ajinomoto added 22 sen to RM15.42, Carlsberg gained 12 sen to RM19.96 and Hong Leong Financial Group climbed 10 sen to RM17.44.

CSH Alliance, the most active counter on Bursa Malaysia, climbed 0.5 sen, or 8.33% to 6.5 sen with 309.46 million shares traded.

Rakuten Trade believes that sentiment will remain cautious as they head towards a heightening volatility environment, primarily driven by the US.

It expects the index to stay disciplined and hover within the 1,440-1,450 range today.

Rakuten said the decline observed among construction players yesterday may present some buying opportunities today.

Malacca Securities expects the selling pressure to pick up within the technology sector following the sharp selldown on Wall Street.

Besides, traders may position into the energy sector following the spike in Brent oil prices amid prolonged Middle East tension.

“Meanwhile, as the US dollar strengthens against ringgit, investors could focus on the export-related industries such as gloves and furniture stocks.

“For defensive theme, we reckon investors to accumulate stocks within the telco and utilities sectors with solid net cash and stable dividend payout,” Malacca Securities said.

Meanwhile, Reuters reported that Asian stocks slid to 11-month lows on Wednesday, U.S. futures dropped and the dollar surged as Treasury yields spiked back toward peaks on fears that U.S. interest rates will stay high.

Hong Kong’s Hang Seng Index fell 0.55%, South Korea’s Kospi Composite Index was down 2.37, while the Nikkei 225 dipped 1.88%. China’s CSI 300 Index fell 0.54%.