Barefoot Investor: FBM KLCI slips below 1,500-point level at mid-morning

The FBM KLCI slipped below the 1.500 level at mid-morning on Monday, Dec 6 amidst cautious trade after the marginally weaker close on Wall Street last Friday on the back of conflicting economic data, including higher retail sales but worse than expected unemployment claims.

At 10am, the FBM KLCI fell 1.45 points to 1,499.53, weighed by losses including at DiGi, MISC, Genting and Maybank. Gainers led losers by 195 to 174, while 193 counters traded unchanged. Volume was 143.75 million shares valued at RM152.37 million.

At the regional markets, Japan’s Nikkei 255 slipped 0.30% to 10,147.45 and South Korea’s Kospi was down 0.16% to 1,954.19.

The Shanghai Composite Index gained 0.23% to 2,849.05, Taiwan’s Taiex rose 0.84% to 8.696.60, Singapore’s Straits Times Index was up 0.81% to 3,198.15 while Hong Kong’s Hang Seng Index opened 0.7% higher at 23,482.13.

On the Malaysian market, RHB Research Institute Sdn Bhd said Friday’s closing proved its concerns valid, as the FBM KLCI failed to earn a confirmation candle on Friday to secure further upside potential on the chart.

In fact, with a “dark cloud cover” candle on the board, plus the flabby technical readings overall, investors may continue to unload, fearing further deterioration on the technical layout, it said.

The research house said the immediate support levels near the 10-day and 40-day Simple Moving Averages of 1,494 and 1,498 should hold the index’s downside to avoid further profit-taking pressure.

“Otherwise, the index would head towards the recent low of 1,474 and the critical level of 1,450. Losing 1,450 will kick-start a major correction signal on the 20-month uptrend on the FBM KLCI, we fear,” it said.

DiGi fell 42 sen to RM24.38; MAHB fell 38 sen to RM5.86, EON Capital, Daibochi and Hong Leong Bank lost nine sen each to RM6.85, RM2.50 and RM9.40 respectively, MISC, QSR and KNM fell seven each to RM8.72, RM5.69 and RM1.93 respectively, Genting down six sen to RM10.60 and Maybank fell two sen to RM8.46.

Gainers included Nestle, PacificMas, BAT, Batu Kawan, KLK, Tadewinds, Dutch Lady and Kluang.

Careplus, which made its debut on the ACE Market today, was the most actively traded counter. The stock added three sen to 26 sen with 12.84 million shares done.

Other actives included Key West, K-Star Sports, Mithril, Baneng, MLabs, Tadewinds Corp, JCY, Scomi and LCL. (The Edge Online)


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